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No escape for Asia Net stocks in rout

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Why you can trust SCMP
Cathy Holcombe

Asian Internet groups listed on the Nasdaq Stock Market have taken a pounding this week, chalking up some of the steepest losses in the recent technology stock sell-off in the United States.

Hong Kong-based regional Internet portal Chinadotcom Corp shed 28.7 per cent in the first two days of trade this week to US$57.75, compared to a 9.27 per cent drop in the Nasdaq Composite Index. Chinadotcom was at $54.5625 early yesterday afternoon.

The stock was down 62.85 per cent from its record $146.875 close on March 3.

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The Singapore-based regional Internet portal Pacific Internet shed 21.96 per cent to $29.3125 in the first two trading days of the week and was down 60.85 per cent from its recent peak of $74.875. The stock was at $28.75 yesterday afternoon.

Analysts said the stocks were vulnerable as their operations were in the younger Internet terrain of Asia.

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The counters were also sold in line with other Internet content providers - which tend to have the highest valuations - as investors sought hardware and infrastructure Internet plays.

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