Share prices sank to a seven-year low as investors cashed in following the growing number of cases of the coronavirus disease 2019 ( COVID-19) in the country and quarantine in Metro Man
Monday’s drop dragged the Philippine Stock Exchange’s (PSE) market cap to P12.14 trillion, down from end-2019’s P16.71 trillion, a 24.92 percent drop or P4.57 trillion.
The Philippine Stock Exchange index (PSEi) was down 487.57 points to 5,335.37, a 7.92 percent drop. This is the market’s lowest since hitting 5,308.52 on Oct. 1, 2012.
The broader all shares index was down 221.85 points to 3,271.79, a 6.35 percent drop.
Losers edged gainers 145 to 46 with 40 stocks unchanged. Trading turnover reached P6.44 billion.
The drop follows the PSE’s announcement of a shortened trading session while the lockdown of Manila is in effect, up until April 14, 2020. Yesterday’ trading started at 9 a.m. for the pre-open session and ended at 1 p.m. Today, the pre-open session starts at 8:30 a.m. while the close will be at 1 p.m.
The peso closed at 51.50 to the dollar, down from 51.03 on Friday. The currency opened at 51.25, hit a high of 50.99 and a low of 51.50. Trading turnover reached $769.39 million.
The Bankers Association of the Philippines (BAP) in an announcement said it is also cutting short the trading of foreign currency to 2 p.m. from the usual 4:10 p.m.. Trading will start at 9 a.m., with a one-hour lunch break, before it resumes at 1 p.m.
“Local shares plunged considerably as investors assess the spread of the virus locally and globally. With the number of cases rising, the country has added measures for more social distancing,” said Luis Limlingan, trader at Regina Capital Development Corp.
“This however would imply that growth would be cut as establishments would realize less business as a result. Furthermore, stock futures plunged Sunday night even after the Federal Reserve embarked on a massive monetary stimulus campaign to curb slower economic growth amid the coronavirus outbreak,” Limlingan added.
Most actively traded Ayala Land Inc. was down P4.20 to P28.80. SM Prime Holdings Inc. was down P1.50 to P28.50. Alliance Global Group Inc. was down P1.03 to P8.02. SM Investments Corp. was down P96.50 to P735. BDO Unibank Inc. was down P17 to P110. Universal Robina Corp. was up P1 to P120. Jollibee Foods Corp. was down P19.50 to P121.
Ayala Corp. was down P60 to P510. PLDT Inc. was down P49 to P980. International Container Terminal Services Inc. was steady at P85.
