PSEi sinks further on worsening virus crisis

The local stock barometer sank to the 7,100 level on Monday as global markets grappled with a worsening global coronavirus contagion.

Declining for the sixth straight session, the main-share Philippine Stock Exchange index (PSEi) fell by 63.76 points or 0.89 percent to close at 7,137.03.

Investors took their cue from the bloodbath in Wall Street on Friday, which dragged down regional markets on Monday.

“Why are markets reacting [more] aggressively than they did in previous pandemics, than the seemingly very real risk of war in the Gulf? [It’s]fear of the unknown,” BDO Unibank chief strategist Jonathan Ravelas said.

“Investors are well used to Iran-US tensions but pandemics are more difficult to price in than the majority of risks,” he added.

Except for the industrial counter, which registered a meager gain, all counters ended in the red. The most battered counter was the mining/oil index, which slipped by 4.33 percent, while the financial counter fell by 2.09 percent. The property counter went down by 1.19 percent.

Total value turnover for the day amounted to P5.87 billion. There was P289 million worth of net foreign selling.

There were 129 decliners that edged out 73 advancers while 39 stocks were unchanged.

The PSEi was dragged down by Megaworld, which lost 5.43 percent, while Security Bank declined by 4.75 percent.

Metrobank and BDO both slumped by more than 2 percent, while Ayala Land, Ayala Corp. and GT Capital all shed over 1 percent.

Metro Pacific, URC, JG Summit and BPI all slipped.

On the other hand, Jollibee rose by 2.51 percent, while Meralco added 1.17 percent.

PLDT and SM Investments also gained.

Tycoon Enrique Razon Jr.’s Manila Water buy-in deal perked up Manila Water, which gained 4.93 percent, but it did not benefit parent conglomerate Ayala. Manila Water, which is not part of the PSEi, was the day’s most actively traded company.

Manila Water surged by as much as 20 percent in early trade but gave up most of its gains as investors pocketed gains.

Other notable gainers outside the PSEi were Cirtek Philippines and MacroAsia, which surged by 23.6 percent and 7.89 percent, respectively. INQ