Amid market panic, SEC wants listed investors informed of coronavirus risks
MANILA, Philippines — Corporate regulators have ordered all publicly listed companies to disclose the extent of disruptions caused by the coronavirus pandemic to their businesses amid a tumultuous period in the financial markets.
As listed firms become transparent with the damage caused by coronavirus fears, the Securities and Exchange Commission (SEC) also wanted companies to indicate in their report precautionary measures to minimize the impact of the outbreak in their operations. Deadline of submission to the bourse is on March 16.
"(This is) pursuant to the declaration of state policy to ensure full and fair disclosure about securities and the duty of issuers to report every fact which would reasonably be expected to materially affect the decision of investors to buy, to sell or to hold securities," SEC said in its notice.
From a lackluster tourism sector to a construction hold-up, investors seemed to still grapple for clues on how to navigate uncertainty as the spread of coronavirus disease-2019 (COVID-19) is yet to come under control. Following regional trends, the Philippine Stock Exchange index (PSEi) lost 14.4% on a weekly basis, despite closing up 1.01% from previous day on Friday.
An added uncertainty is the potential impact of President Rodrigo Duterte’s order to put Metro Manila, the country’s center of business and commerce, under a month-long “community quarantine” starting March 15, an intensive measure that businesses from retailers, pharmacies and conglomerates say would disrupt their operations.
Businesses said they are still awaiting the fine-print of Duterte's lockdown order.
Fears that the coronavirus disease-2019 (COVID-19) — which has infected 52 and killed five in the Philippines— and an oil price war among major producers have stoked fears of a worldwide recession, sending global stocks into bear market territory.
On Friday, PSEi recovered some ground from the previous day’s crash, which saw the bourse plummeting by the worst magnitude since the 2008 global financial crisis, and ending at a level not seen since 2012.
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