How China's falling manufacturing index will hurt Wilmar

PMI fell sharply to 48.3.

Accoridng to OCBC, economic data out of China continues to remain sluggish, with the HSBC’s flash PMI number falling sharply to 48.3 in Jun from 49.2 in May, which was not only weaker than expected (consensus of 49.1), but it also shows that the contraction in manufacturing is much faster than expected.

Although Bloomberg still has consensus GDP forecast for China at 7.8%, market watchers believe that further downgrades are likely, and China could potentially see a GDP growth of 7.5% this year or lower. 

Here's more from OCBC:

Volatile price swing over last two weeks As a result, Wilmar international Limited (WIL), with its large exposure to China via its oilseeds crushing and consumer pack businesses, certainly felt the impact, given the recent wild swings in its share price over the last week or so.

From a low of S$3.11 on 14 Jun, the stock jumped 7.1% to hit a high of S$3.33 on 18 Jun before sliding back 6.3% to almost where it started before recovering slightly to end at S$xxx.