Share prices ended lower yesterday as risk aversion on the economic impact of the novel coronavirus is digested by investors.
The Philippine Stock Exchange index (PSEi) was down 63.76 points or by 0.89 percent to 7,137.03.
The broader all shares index was down 35.38 points or by 0.82 percent to 4,256.83.
Losers edged gainers 129 to 73 with 39 stocks unchanged. Trading turnover reached P5.87 billion.
The peso closed at 50.80 to the dollar, up from 50.83 on Friday.
The currency opened at 50.95, hit a high of 50.80 and a low of 51.05.
Trading turnover reached $1.07 billion.
“Philippine stocks fell sharply as investors grew increasingly worried about the potential economic impact of China’s fast-spreading coronavirus. The Chinese market reopened on Monday with pledge from Chinese regulators to inject liquidity but little to contain the massive sell off today,” said Luis Limlingan, managing director at Regina Capital Development Corp.
Limlingan said the concern was due to China’s coronavirus death toll reaching 361, “with confirmed cases in the country topping 17,000, as the epidemic continued to spread.”
“China’s central bank plans to avert a potential sell-off by injecting more than $21 billion of liquidity into markets,” he said.
“To cope with the potential market impact, the PBOC (People’s Bank of China) has announced a list of measures including using reverse repurchase agreements to supply 1.2 trillion yuan of liquidity today. The central bank also urged banks to trim interest rates for virus-hit areas while it will keep ample liquidity in the market. China also halted night sessions for futures trading from Monday until further notice and allowed share pledge contracts to be extended by as long as six months. In addition, China will allow insurers to invest over 30 percent of assets in stocks,” he added.
Most actively traded Manila Water Co. Inc. was up P0.60 to P12.76. SM Prime Holdings Inc. was steady at P38.90. Ayala Land Inc. was down P0.65 to P40.95. Ayala Land Inc. was down P0.65 to P40.95. Metropolitan Bank and Trust Co. was down P1.30 to P56.50. Ayala Corp. was down P10.50 to P716. Cirtek Holdings Philippines Inc. was up P2.10 to P11. BDO Unibank Inc. was down P3.50 to P144.50. PLDT Inc. was up P6 to P1,002. Metro Pacific Investments Corp. was down P0.01 to P3.20.
