Lenovo shares hit over fears for PC market

City A.M. Reporter
Shares of Lenovo Group, the world's No.2 PC maker, fell by more than six per cent to a more than four-month intraday low on market concern over the outlook for the PC market amid the global economic slowdown.

Lenovo's shares fell as much as 6.3 per cent to HK$6.26 in afternoon trade, extending earlier losses and hitting the lowest intraday level since 9 February.

"The huge increase in volume suggests that a major holder is now exiting the stock," said a trader who declined to be identified because he was not authorised to speak to the media.

An analyst said Lenovo's stock had outperformed peers such as market leader Hewlett-Packard and No.3 PC vendor Dell this year, but worries over Europe's economy and a further slowdown in China might dampen PC demand and could affect the Chinese company.

Lenovo shares are still up 22 per cent so far this year, outperforming the main Hang Seng Index's .HSI 2.9 per cent gain, Dell's 16.7 per cent fall and HP's 20.1 per cent loss.