MANILA, Philippines — Global stock markets continued to plunge to historic lows after the International Monetary Fund (IMF) said the global economy is now in recession because of the coronavirus disease 2019 or COVID-19 pandemic.
Philippine shares were no exception and thus were not able to get through yesterday without being badly beaten.
The benchmark Philippine Stock Exchange index (PSEi) nosedived by 135.46 points, or 2.57 percent, to finish at 5,131.16. Likewise, the broader All Shares index fell by 75.19 points or 2.33 percent.
All indexes were down led by the financials, holding firms and the property indices.
Total value turnover was thin at P5.333 billion. Market breadth was negative with 134 losers and 49 gainers, while 37 issues were left unchanged.
Traders said market investors are worried that the Philippine economy may slip into a recession as a result of the pandemic.
“Philippine recessions worries amid the coronavirus sent the local market lower by 135.467 points or 2.57 percent at 5,131.16. Banks shed the most losses by 3.35 percent. Neighboring peers also plunges as the global economy hit a downturn according to the International Monetary Fund,” said Philstocks Financials.
IMF chief Kristalina Georgieva said Friday that the global economy is now in recession due to the contagion.
“We should not go with small measures now when we know that it is a gigantic crisis...We’ve never seen the world economy standing still,” she said.