Stocks plummet by 2.5% on wide range of concerns

MANILA, Philippines — The stock market went on a tailspin yesterday as investors continued to stay away from the market amid lingering global risks.

The benchmark Philippine Stock Exchange index (PSEi) finished at 7,187.44, down 182.34 or 2.47 percent, while the broader All Shares index lost 81.34 points or 1.87 percent to close at 4,265.42.

All the other gauges ended in negative territory, marking yet another red letter day at the Philippine stock market.

Justino Calaycay, head of research of Philstocks Financials, said “a plethora of risks continues to keep investors at bay, hands deep in their pockets and unwilling to make long-term commitments to their equity portfolio,” he said.

He said more and more companies are opting for the debt market and “the strong demand across all tenors in government auctions are part of the growing body of evidence unfavorable to common stocks.”

Calaycay said the continued spread of the coronavirus disease is still causing uncertainties for investors.

“Finding a cure for COVID-19 remains a challenge — and it is a genuine global concern both from a health and economic perspective,” he said.

On the local front, the uncertainty surrounding the franchise of ABS-CBN is also a concern, he said.

“ABS-CBN remains in the middle of controversies with respect to the renewal of its franchise,” Calaycay said.

Yesterday, shares of ABS-CBN rose 16.99 percent to finish at P23 per share, up from Fridays close, topping the gainers list.

“ABS-CBN owned the day with investors flocking to its shares ahead of and simultaneous with the proceedings at the Senate which had the network’s “future” on the agenda. It has attracted flows of P90.841 million or roughly two percent of the market aggregate on 4.2 million shares changing hands,” Calaycay said.

Furthermore, the water concession issues, though seemingly pushed to the backburner for the time being, is still to be confronted and resolved, he said.