As if the sales slump caused by the protracted social unrest is not bad enough, Hong Kong’s moribund retail and tourism industries are bracing for even harder times that could match the scale of the devastation brought about by the Sars epidemic in 2003.

This time, it is the outbreak of the Wuhan coronavirus that has killed nine people and is spreading to other mainland cities and abroad. There are more than 440 confirmed cases while medical experts warned that the virus could mutate and spread further.

There is no confirmed cases in Hong Kong. But tens of people returning from the mainland have been hospitalized for symptoms of respiratory infections. The government said it has taken all precautionary measures to prevent the spread of the disease in Hong Kong.

Such assurances haven’t put many people’s heart at ease while the threat of the epidemic has been greatly exaggerated by the local media, making comparison with Sars which gripped the city with fear and plunged the economy into the abyss. As such, any hope by retailers and caterers of a relief from the business slump during the Chinese new year holidays, usually the busiest time of the year, has been dimmed.

Investors, however, have remained sanguine. After Tuesday’s sharp correction, the benchmark index regained its footing on Wednesday to surge nearly 350 points, or 1.26 percent, in early afternoon, shaking off concerns about Moody’s downgrade of Hong Kong’s rating by a notch to Aa3 from Aa2.

Analysts predicted that the market will hold at present level in the remaining days before the new year break while nobody is in a hurry to buy or sell. Looking ahead, the stocks that can hold their values are those in the telecoms and utilities sectors which are seen to be least affected by the economic downturn.

But the retail sector, including some developers that have substantial interests in retail properties, could take further beating. Airlines and hotels also are seen to be stocks to avoid, at least for now.