Hot stock update: Parkson Retail down 16.9% on profit guidance

PARKSON Retail Asia closed 16.9 per cent lower at S$0.191 on Monday, leading up to the release of its third-quarter results on May 12.

Last Friday, the department store operator said that the group will be reporting a loss for the quarter ended March 31, 2016 - a reversal from having made a profit for the corresponding quarter a year ago.

"This is primarily due to weak discretionary spending across the group's major markets, leading to overall reduced sales during Q3 FY2016. Given current weak economic conditions, the group will continue to monitor stores' performance closely and take appropriate actions where necessary," it said.

The profit guidance was based on a preliminary review of the unaudited management accounts, it added.

More than 24.1 million shares changed hands on Monday, landing it among the most heavily traded counters on the local bourse.