Index slumps as coronavirus care reaches alarming levels

MANILA, Philippines — Share prices plunged  yesterday following reports that the COVID-19 critical care nationwide has reached alarming level, analysts said.

The main composite index Philippine Stock Exchange index (PSEi) went on a tailspin, plunging by 156.30 points, or 2.53 points, to close at   6,016.51, while the broader All Shares gauge slipped 81.49 points, or 2.24 percent, to finish at 3,544.36.

Most indexes were down led by the industrial and holding firms.

Total value turnover reached P7.286 billion.  Market breadth was negative with 166 losers and  48 gainers, while 32 issues were left unchanged.

Traders said the PSEi plunged to the 6,000 level as the coronavirus disease 2019 or COVID-19 critical care nationwide has reached the dangerous level.

“The local index plunged after the Department of Health reported that the critical care for COVID-19 patients nationwide is 49 percent utilized,” according to AB Capital Securities Inc.

BDO Capital & Investment Corp. president Ed Francisco said that there’s still a lot of upside potential even as foreign investors are leaving.

“Investors are now on a wait and see mode as the PSEi level has already priced in bad second quarter earnings,” Francisco said in a television interview.

For Chris Mangun of AAA Securities, it’s the possibility of stricter quarantine restrictions that are causing uncertainty.

“The PSEI collapsed today as investors believe stricter quarantine restrictions will be reimposed because of surging coronavirus cases. The latest jobs report from the labor department which shows an increasing number of permanently displaced employees may have also affected the sentiment,” Mangun said.