Shares of China National Building Material Company Limited (CNBM) soared by 11.03% on October 16, 2024, amid a volatile trading session for the Hong Kong-listed company.

The sharp rally came despite CNBM's warning earlier in the day that it expects to report a loss attributable to equity holders of around 700 million yuan for the first nine months of 2024, a significant reversal from the profit of 2.35 billion yuan in the same period last year. The company cited declining sales prices and volumes of its core products, as well as weaker performance from its associates, as the reasons for the anticipated loss.

While the negative earnings guidance initially weighed on CNBM's stock, investors appeared to shrug off the disappointing results, potentially betting on a stronger performance in the final quarter of the year or optimism about the company's prospects in 2025. Some analysts speculate that the expected loss may have been better than feared, leading to a relief rally in the stock.