Local stock barometer falls to lowest in more than 3 years

The local stock barometer fell to its lowest level in more than three years on Friday as fears over the new coronavirus (COVID-19) contagion escalated across global markets and triggered heavy net foreign selling totaling P4 billion.

The main-share Philippine Stock Exchange index (PSEi) lost 179.93 points or 2.58 percent to close at 6,787.91 as investors sold down large-cap stocks in line with a bloodbath across US and regional markets.

This marked the PSEi’s weakest finish since Dec. 27, 2016, when it closed at 6,658.20.

For the week, the PSEi gave up a total of 581.87 points or 7.9 percent from last week’s closing of 7,369.78. The market has now fallen deeper into bear territory, having lost 25 percent from its record high of 9,058.

After breaching a critical support level and an October 2018 low of 6,790, Papa Securities said the next support levels would be at December 2016’s bottom of 6,499 and then at January 2016’s low of 6,084.

The China-epicentered COVID-19 epidemic has now infected 82,000 people and claimed 2,800 lives worldwide.

All counters weakened but the most battered were the mining/oil and financial sub-indices, which lost 4.47 percent and 3.86 percent, respectively.

Value turnover for the day amounted to P11.39 billion.

There were 160 decliners that overwhelmed 50 advancers, while 36 stocks were unchanged.

Stocks affiliated with the Ayala group were among those that were heavily sold down. Investors dumped shares of BPI, which slid by 7.38 percent, while Ayala Land and Ayala Corp. fell by 3.47 percent and 4.95 percent, respectively.

Aboitiz Power also shed 3.17 percent, while JG Summit lost 3.43 percent.

BDO Unibank tumbled by 2.8 percent while Globe Telecom and Jollibee lost 2.8 percent and 2.58 percent, respectively.

SM Prime, SM Investments and GT Capital all declined by more than 1 percent, while PLDT shed nearly 1 percent.

On the other hand, URC, Megaworld and Alliance Global Group bucked the day’s downturn, posting marginal gains.

One notable gainer outside the PSEi was EuroMed Laboratories, which surged by 23 percent. The company, which manufactures medical equipment including IV fluids, is seen to generate windfall from the coronavirus contagion.

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