Stocks post biggest one-day drop in 4 years

The local stock market tumbled on Wednesday, sinking deeper into bear territory as an unabated COVID-19 contagion caused a bloodbath across glo­bal markets.

The main-share Philippine Stock Exchange index (PSEi) slid by 277.6 points or 3.86 percent to close at a 15-month low of 6,909.84.

This marked the PSEi’s biggest single-day decline since Jan. 11, 2016, when it fell by 4.37 percent likewise in line with a regional selldown. The local market was bludgeoned by P3 billion worth of net foreign selling.

Ron Acoba, chief investment strategist at equities research provider Trade Edge, said after this steep decline, the market was due for a “minor” rebound. However, he stressed that “we are entering a start of a major long-run decline regionally.”

“Health concerns continue to spread fear and uncertainty in the financial markets. Anxiety about supply chain disruptions, trade and remaining inventories of businesses is further weighing down on PSEi. Reports of the impact being felt by almost all sectors of our economy are further discouraging investors,” said Astro del Castillo, managing director at fund management firm First Grade Finance.

“Most funds are also bracing for a global credit crunch and financial worries. The outlook remains bleak as [COVID-19] cure remains evasive,” he added.

As of Wednesday, the China-epicentered coronavirus has infected more than 81,000 people and claimed over 2,700 lives globally.

Overnight, the Dow Jones industrial average bled by 879.44 points or 3.2 percent to close at 27,081.3 as new coronavirus cases continued to rise.

At the local market, the PSEi has shed a total of 905.42 points or 11.59 percent since the start of the year.

All counters suffered heavy selloff on Wednesday. The most battered were the property and industrial counters, which both fell by more than 4 percent, while the holding firm and services counters slipped by nearly 4 percent.

The financial and mining/oil counters were down by more than 2 percent.

Value turnover for the day amounted to P10.06 billion.

There were 184 decliners that overwhelmed 27 advancers, while 30 stocks were unchanged.

Investors dumped shares of port terminal operator ICTSI, which plunged by 11.3 percent due to concerns on the disruption in the global supply chain caused by the new virus.