=MARKET BUZZ: Cosmo Lady Up; Hiring Ex-Victoria's Secret CEO Seen Boosting Image
HONG KONG (Jul 16) -- Cosmo Lady gains 6.7% to HK$4.17, rising for a third day despite broad market retreat, after appointing Sharen Jester Turney, former CEO of Victoria's Secret, as its chief strategic officer with effect from July 1. Hang Seng Index slips 0.4%. Flannery Liou, analyst with KGI Securities in Shanghai, says announcement could benefit share price of female intimate wear maker in short term as it could improve company's standing. Adds, Cosmo Lady currently caters to mass market but has the vision to be mainland China's Victoria's Secret, an American peer seen as high-end or even luxury brand; says news could "symbolically improve the company's brand awareness and image." In the long term, however, investors will still pay attention to sales recovery and Turney's integration into the management, Liou adds. Note, conglomerate Fosun International is strategic investor in company, which sees intimate wear market in China as "huge in size," but "very fragmented" with large number of players.
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