Share prices tumble as virus scare lingers

MANILA, Philippines — Share prices tumbled yesterday as fears brought about by the new reported cases of the coronavirus disease (COVID-19) in the country continued to linger, analysts said.

The benchmark Philippine Stock Exchange Index(PSEi) plunged by 114.39 points, or  1.66 percent, to close at  6,770.38, while the broader All Shares index closed 1.35 percent, or 55.32 points, lower at 4,039.55.

“Shares in the local equities market closed sharply lower as anxieties about the worldwide spread of COVID-19 lingered and concerns about the ability of governments to control the impact of the disease on their economies sent the benchmark US Treasury note yield to a fresh all-time low,” Regina Capital Development Corp. Business Development head Luis Limlingan said. 

On Friday, the Department of Health(DOH) reported two new cases of the COVID-19 in the country, bring the total confirmed cases to 5.

First Grade Finance Inc. managing director Astro del Castillo echoed Limlingan’s sentiments, saying that the COVID-19 situation continues to weaken the market as investors remain nervous.

“New reports of more cases is making investors more nervous,” del Castillo said.

“Favorable inflation results and news of cheaper crude prices and cut in interest rates were almost ignored by the market,” he said.

The government reported earlier this week that inflation in February eased to 2.6 percent,lower than the 2.9 percent posted in the month before and the 3.8 percent inflation in February 2019.

“Expect market to remain trading sideways on a downward bias until virus concerns are well managed and cured,”Del Castillo said.

A total of 76,490 trades valued at P5.89 billion were made, while volume turnover stood at 633 million.

Declines outnumbered advances 138 to 45, while 38 remained unchanged.