Sunday, April 26, 2009

Market Hit By Swine Flu

. Sunday, April 26, 2009

By stockOzone team

Asian stock markets have fallen in Monday trading, with airlines leading the declines on fears over the economic impact of the swine flu outbreak.

With the outbreak in Mexico spreading to the US and Canada, shares in Hong Kong's Cathay Pacific Airways were 8% lower in afternoon trade.

Its loss was echoed by carriers across the region, with shares in Japan Airlines ending the day down 4.5%.

Investors fear the flu outbreak may lead to global travel restrictions.

In Hong Kong, the main Hang Seng index was down 2.7%, or 416 points, at 14,843 in afternoon trading.

Meanwhile, Japan's Nikkei ended the day down 0.4%, or 32 points, at 8,676.45.

Australia's main share index closed down 0.3%, with shares in airline Qantas shedding 3.5%.

Analysts said investors were more cautious than panicked, but still concerned that if the outbreak worsened, especially in the US, it could potentially derail economic recovery efforts.

"Investors are already sitting nervously looking for excuse to sell off and what better than swine flu," said Miles Remington, head of Asian sales trading at BNP Paribas Securities in Hong Kong.

Disclosure: Author does not own any of the stocks discussed here.





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1 comments:

CollegeStock said...

Very good article. I've been updating a list of swine flu stocks that may be in play this week and i'd ask that you add any more that i'm missing:

http://collegestock.com/blog/12-potential-swine-flu-stocks-on-the-deans-list-for-monday-42709/

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