Hang Seng Index makes its worst Lunar New Year debut since 2016, as China coronavirus outbreak spooks traders
- Hong Kong stock market makes ‘black debut’ for fifth year in a row as benchmark index slips 2.8 per cent on day one
- Mainland Chinese markets to delay opening to Monday following State Council ruling
Hong Kong’s key stock index made its worst opening since 2016 on the first trading day of the Year of the Rat, as traders ran for cover after a two-day pause amid a worsening coronavirus outbreak.
The Hang Seng Index opened at 27,101, or 3 per cent below its close on January 24, the final trading day of the Year of the Pig. It finished Wednesday at 27,160.63, down 2.8 per cent. That makes it its worst opening since the Year of the Monkey in 2016, when the market opened 3.8 per cent lower.
Retail and airlines stocks were the biggest losers. Cosmetics retailer Sa Sa International Holdings dropped 9.1 per cent, while Chow Tai Fook Jewellery Group plunged 8.1 per cent, China Eastern Airlines fell 3.4 per cent and Cathay Pacific Airways moved 3.2 per cent lower.
Macau casino operators that relied heavily on mainland tourists’ spending also tumbled. Galaxy Entertainment Group fell 5.2 per cent while Sands China dropped 5.6 per cent.
Pharmaceutical stocks and some new-economy firms had a good day. China Health Group rose 280 per cent while Hong Kong Television Network ended the day 13.7 per cent higher and internet giant Tencent jumped 0.7 per cent against a falling market.
Hong Kong Exchanges and Clearing (HKEX), the city’s bourse operator, cancelled a public ceremony for the first time in two decades to mark the first trading day of the new lunar year, to prevent crowds from gathering in a closed space, at a time when eight cases of the Wuhan coronavirus have been confirmed in the city.