Share prices dived to 2012 levels as the number of cases of coronavirus disease 2019 (COVID-19) patients rose to 49, triggering the Philippine Stock Exchange’s “circuit breaker system” or a halt in trading.
The Philippine Stock Exchange index (PSEi) was down 616.99 points to 5,736.27, a 9.71 percent drop. This is the market’s lowest close since hitting 5,636.59, on December 18, 2012, also its biggest drop in terms of points.
As of yesterday, the market shed 2,078.99 points or 26.6 percent on a year-to-date basis.
Just 30 minutes shy of the market closing yesterday, the PSE activated the “circuit breaker” which calls for a trading half for 15 minute when the market drops by 10 percent.
The last time the circuit break was employed was in October 2008, at the height of the US subprime crisis.
The broader all shares index was down 315.96, an 8.3 percent drop.
Losers edged gainers 226 to 7 with 26 stocks unchanged. Trading turnover reached P7.96 billion.
The peso closed at 50.85 to the dollar, down from Wednesday’s 50.55. It opened at 50.65, hit a high of 50.63 and a low of 51.05. Trading turnover reached $1.28 billion.
“The nightmare continues for global equities as investors continue to rush to cash.
Governments have stepped up their efforts of containing the deadly virus by imposing stricter travel options and shutting down schools and businesses to avoid mass gatherings. Asian markets were hit harder with our local bourse ending as the worst performer (yesterday),” said Chris Mangun, AAA Securities head of research.
“The PSEi suffered one of its worst daily performances today in the last 20 years. Trading for our market was halted today after tripping a circuit breaker after diving more than 10,” Mangun added.
Turnover value for the day came in at P7.79 Billion excluding block sales.
Mangun said investors “reacted to the possibility of a lockdown in Metro Manila to contain the COVID-19 disease before we have a massive outbreak.”
“The sudden selling coupled with a lack of buying, sent prices into a freefall, something we have not seen since the last financial crisis. The general sentiment has gone from fear to hysteria with may continue until we see more evidence that the virus can be contained,” he said.
Most actively traded SM Prime Holdings Inc. was down P3.90 to P30.90. Ayala Land Inc. was down P4.30 to P33.90. SM Investments Corp. was down P110 to P790. BDO Unibank Inc. was down P16 to P120. Ayala Corp. was up P4.05 to P600. Metropolitan Bank and Trust Co. was down P4.75 to P43.35. Metro Pacific Investments Corp. was down P0.44 to P3.06. Alliance Global Group Inc. was down P0.25 to P9.75. PLDT Inc. was down P40 to P980.
