MANILA, Philippines — Share prices tumbled for the third straight day yesterday as the coronavirus continues to spread worldwide, fanning fears of a global economic slowdown.
The benchmark Philippine Stock Exchange index ended in the red at 7,462.31, down 6.39 points, or 0.08 percent, while the broader All Shares index slipped 10.61 points or 0.23 percent to finish at 4,425.06.
“Local share prices practically ignored an overnight rebound in US equities, tumbling for a third straight session, its 7th in the last 10 sessions. The main Philippine shares benchmark sustained its break below the 7500-line which was previously seen as one of the critical turning points of the market. Magnifying the pessimistic mood is the fact that the index has traded below this line in four of the last seven days,” said Justino Calaycay of Philstocks Financials.
He said this was because the number of infections, possible infections and death due to the 2019 novel coronavirus are mounting.
Majority of the gauges ended in negative territory except for the property and services sectors.
Worries of a coronavirus pandemic continue to affect investor sentiment. Many companies are likely to take a hit such as airlines, hotels and other consumer services companies.
Total value turnover was thin at P4.955 billion. Market breadth was negative with 118 losers against 69 gainers, while 42 issues were left unchanged.
“Philippine shares continued to drop, though slightly yesterday, as fatalities from the Wuhan coronavirus surged to 132 in China with over 800 new cases, bringing the total to 5,974 cases in China. This has surpassed the 5,327 cases reported during the SARS period in 2003,” said Luis Limlingan of Regina Capital.