Share prices sank to their lowest since January 2016 in a bloodbath which saw investors grappling with the reported increase in COVID-19 cases in the Philippines.
The Philippine Stock Exchange index (PSEi) was down 457.77 points or by 6.76 percent to 6,312.61, the lowest se since Jan 26, 2016 when it hit 6,311.60.
The broader all shares index was down 224.33 points to 3,815.22, a 5.55 percent drop.
Losers edged gainers 204 to 23 with 30 stocks unchanged. Trading turnover reached P6.31 billion.
The PSE said Monday’s drop is the PSEi’s biggest point close since Aug. 24, 2015 when the index dropped 487.97 points.
The peso closed at 50.58 to the dollar, up from 50.64 on Friday.
The currency opened at 50.63, hit a high of 50.54 and a low of 50.715. Trading turnover reached $771.1 million.
Japhet Tantiangco, analyst at Philstocks Financial Inc., said Monday’s drop is the “third worst” drop of the market since the start of 2008.
“The main culprit for the major sell-off is the mounting COVID-19 infections in the Philippines. Now at 10 (cases at presstime) with some local transmissions on record, worries have escalated on the negative economic impact of the epidemic from tourism, to foreign trade and investments, to supply chains, to possible work suspensions, to consumption, and ultimately, to the laborers who will be the number one victims once the spread worsens. Full year 2019 earnings have been good so far, but have done very little to support the forward looking market,” Tantiangco said.
“Neighboring peers and western counterparts also share the same sentiment with Asian markets also in deep red territory, and US futures DJIA, S&P 500, and the NASDAQ pointing to another precipitous slide for Wall Street, all down by almost 5 percent as of 4:25 pm,” he added.
Most actively traded Ayala Land Inc. was down P1.85 to P37.75. Ayala Corp. was down P41.50 to P604. SM Prime Holdings Inc. was down P2.45 to P36.10. BDO Unibank Inc. was down P10.50 to P131. SM Investments Corp. was down 40.50 to P902.50. Metro Pacific Investments Corp. was down P0.14 to P3.48. Metropolitan Bank and Trust Co. was down P5.50 to P47.50. Alliance Global Group Inc. was down P0.03 to P.9.90. International Container Terminal Services Inc. was down P13 to P89. Jollibee Foods Corp. was down P13.50 to P163.
