HK's SITC hits 7-month low; Daiwa downgrades on virus hit to Asia trade

SITC International Holdings

16/03/2020 06:11

** Shares of transportation and logistics solutions provider
SITC International Holdings Co Ltd  1308.HK  fall as much as
9.3% to HK$7.38, the lowest since Aug 26, 2019
    ** Stock later trims loss to HK$7.42, still down 8.9%,
heading for biggest intraday pct decline since August 2018
    ** Brokerage Daiwa downgrades SITC to "hold" from "buy" and
trims PT to HK$7.80 from HK$11.50, saying trade activities in
Asia have been significantly disrupted by COVID-19
    ** Daiwa says inventory re-stocking demand will be limited
given potential economic downturn, while trading activity will
start to pick up in late 3Q20, and that will affect SITC as the
company is highly dependent on trade with Asian markets
    ** Stock has fallen 11.6% so far this year, as of last close
    ** SITC has outperformed the Hang Seng Commerce & Industry
Index  .HSNC  by 1.5 percentage points in the past month
    ** The Hong Kong Hang Seng Commerce & Industry Index  .HSNC 
drops 4.3%, and the benchmark index  .HSI  falls 3.3%
    

 (Reuters Messaging: donny.kwok.thomsonreuters.com@reuters.net)