Hong Kong Market tanks to near 3-year low

Headline indices of the Hong Kong stock market finished session near three-year low on Thursday, 12 March 2020, with investors sharply growing risk-averse in the wake of U.S. stocks plunged overnight after US President Donald Trump announced a ban on travel from Europe and the World Health Organization declared the coronavirus outbreak a global pandemic. At closing bell, the benchmark Hang Seng Index dropped 3.66%, or 922.54 points, to 24,309.07, its lowest close since April 2017. The Hang Seng China Enterprises Index slipped 3.52%, or 344.75 points, to 9,725.72.

The coronavirus outbreak, which originated in China, has cast a shadow over the global economic outlook. The coronavirus has infected more than 124,000 people and claimed nearly 4,600 lives worldwide, with market experts fearing that pandemic could disrupt global supply chains and drive the global economy into recession.

The World Health Organization described the new coronavirus as a pandemic for the first time on Wednesday, adding that Italy and Iran were now on the frontline of the disease and other countries would soon join them.

The risk-off mood accelerated its downswing after Trump announced a 30-day ban on all travel from Europe excluding Britain swelled concerns that business activities between the United States and Europe will be badly affected.

Trump announced other steps to support U.S. businesses and promote growth but some investors were unconvinced the global economy can quickly recover as worries grow that the number of infections could rapidly snowball globally.

CHINA MOBILE smothered 3.6% to HK$55.45. The stock once hit HK$54.65, the lowest point since the 2008 financial crisis.

Exporters nosedived on the COVID-19 spread in Europe and the US. TECHTRONIC IND plummeted 9.6%. SHENZHOU INTL and TEXHONG TEXTILE eroded 6.4% and 6.6%, respectively.

Handset equipment players were under heavier selling pressure. AAC TECH and SUNNY OPTICAL tanked 7.1% and 7.3%.

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