THE Philippine Stock Exchange index (PSEi) on Wednesday plunged to its lowest in more than a year, mirroring the global market’s decline amid fears of the coronavirus disease 2019’s impact on the world economy.
The bellwether PSEi shed 277.60 points or 3.86 percent to 6,909.84 at the closing. This is the lowest for the main index since Nov. 13, 2018 when it finished at 6,843.83.
The broader All Shares lost 136.05 points or 3.19 percent to 4,129.37. All sectoral indices – Financials, Industrial, Holding Firms, Services, Mining and Oil, and Property – also ended in red.
“The PSEi played catch up with the decline in the international markets as the coronavirus continued to rattle investors’ sentiment particularly its economic impact in the short term,” Philstocks Financial senior equity analyst Japhet Tantiangco said.
Trading on the PSEi was closed on Tuesday in observance of the 34th anniversary of the EDSA People Powere Revolution – a special non-working day.
Asian shares fell on Wednesday as a US warning to Americans to prepare for the possibility of a coronavirus pandemic drove another Wall Street tumble and pushed yields on safe-haven Treasuries to record lows, according to a report by Reuters.
“The local market’s precipitous decline today is still due to the worries concerning the possible COVID-19 global outbreak, already signaled by the mounting cases and deaths outside of China,” Unicapital Securities equity trader Christopher San Pedro said.
“We’re already running a four-day net foreign selling streak with today’s net outflows amounting to P3.1 billion. Selling also had conviction with value turnover registering P10.1 billion,” San Pedro said.
Foreign funds bought P4.474 billion shares and sold P7.557 billion for a net selling position of P3.082 billion.
More than 1.352 billion shares valued at P10.058 billion, changed hands. Decliners led advancers, 184 to 27, and 30 issues were unchanged. (GMA News)
