Lenovo shares plummet on PC market worries

 
City A.M. Reporter
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ES of Lenovo Group, the world’s number two PC maker, fell by more than six per cent yesterday 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 trading, 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.

An analyst said Lenovo’s stock had outperformed peers such as market leader Hewlett-Packard and number three 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.

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