THE coronavirus outbreak sent the Shanghai composite index tumbling by 8.7% on the first day of trading after the Chinese New Year holidays. 

According to data from Bloomberg, the exchange opened at 2,716.70, which was 8.7% lower than the previous close of 2,976.53 before rebounding to 2734.66. 

Meanwhile, the Shanghai Shenzhen CSI 300 index plummeted by 9.1% at market open to 3,639.91 from 4,003.90.

It then rebounded to 3,676.60.

The novel coronavirus, which originated from Wuhan, in China’s Hubei province has thus far claimed 361 lives and infected more than 17,205 across the country. 

The virus has thus far spread to more than 20 countries, including Malaysia, with the Philippines reporting the first death outside of China.

Domestically, the FTSE Bursa Malaysia KLCI opened 8.92 points easier at 1,522.14 today from Friday’s close of 1,531.06, the lowest in more than five years.  

 The epidemic also led several major equity markets to end last week in asea of red, MIDF Research said in its weekly fund flow report. 

The report noted that the Asian exchanges under its coverage, namely Thailand, Indonesia, Philippines, South Korea, Taiwan, India and Malaysia, saw the largest foreign net outflow in 37 weeks amounting to US$3.65 billion (RM15.3 billion) last week.

Bursa Malaysia also saw its share of foreign exodus with international investors dumping RM659.7 million net of local equities last week, the largest net outflow in eight weeks. 

“The local stock barometer began the week on a sombre note as offshore investors sold -RM70.9 million net on Tuesday. The ringgit also followed suit to lead decliners in Asia with a -0.7% depreciation against the greenback due to growing concerns over the spread of the n-coronavirus.”

Travel-related counters, such as Malaysia Airports Holdings Bhd and AirAsia Group Bhd, took a hit as they registered a decline by 6.7% and 3.8% on the same day. – February 3, 2020.