Share prices sank to over a year-low amid risk aversion as the novel corona virus (COVID-19) extends its reach to more countries.
The Philippine Stock Exchange index (PSEi) was down 277.60 points to 6,909.84, a 3.86 percent drop.
This was the lowest since November 13 when the index hit 6,843.83.
The broader all shares index was down 136.05 to 4,129.37, a 3.19 percent drop.
Losers edged gainers 184 to 27 with 30 stocks unchanged. Trading turnover reached P10.06 billion. Foreign funds were net sellers of P3.08 billion-worth of stocks.
The peso closed at 51.035, down from 50.96 on Monday. It opened at 51.085, hitting a high of 50.99 and a low of 51.13.
Trading turnover reached $1.43 billion.
Astro del Castillo, First Grade Finance Inc. managing director, said investors are “racing to the exits” given the new COVID-19 scare, driving most funds “for safer assets including the greenbuck.”
Jonathan Ravelas, chief market strategist at BDO Unibank Inc., said the peso remained weak “as market braces for the impact of the the global virus outbreak.”
Most Southeast Asian stocks were also pummelled by the latest COVID-19 scare, Reuters reported, noting that the pace of infections in South Korea accelerated, bringing the total number of cases to 1,146 in the worst-hit country outside China.
The Reuters report also said the Philippine market led loses in Southeast Asia, marking its “biggest intraday drop in more than four years and hit their lowest in over 15 months in ‘pent-up selling’ as trading resumed after a holiday.”
Japeth Tantiangco, analyst at Philstocks Financial Inc., said the PSE is “already running a four-day net foreign selling streak.”
“The PSEi was Asia’s worst performer today after investors rushed the exits with double the force, as the market remained closed for the holiday yesterday. There is a lot of uncertainty right now and the best option is to remain on the sidelines and wait out the storm,” Tantiangco said.
Luis Limlingan, managing director at Regina Capital Development Corp., said the US’ Center for Disease Control (CDC) warned of more COVID-19 cases.
“More countries reported new cases of the virus. Croatia, Austria and Switzerland all reported their first cases. CDC cited that the world is not ready to tackle and contain the outbreak and warned Americans to begin preparing for outbreak of coronavirus across the country. CDC also said it’s not a question of if this will happen but when this will happen and how many people in this country will have severe illnesses,” he said.
This led to the overnight drop in Wall Street and the US’ 10-year Treasury yield sinking to record low.
Chris Mangun, head of research at AAA Equities Inc., said investors appear to “lose hope that the COVID-19 can be contained.”
“The World Health Organization says the epidemic has peaked in China, but concern that its spread is accelerating in other countries is likely to keep investors on edge,” Mangun said.
Most actively traded Ayala Land Inc. was down P2.75 to P38.65. BDO Unibank Inc. was down P6.30 to P137. SM Prime Holdings Inc. was down P0.80 to P39.30. SM Investments Corp. was down P25 to P985. Jollibee Foods Corp. was down P10.50 to P175.10. ISM Corp. was up P0.11 to P1.70. Universal Robina Corp. was down P6 to P140.50. Bank of the Philippine Islands was down P0.60 to P81. Ayala Corp. was down P30 to P690.
