The stock market slumped Friday in the last trading of the year as a spike in daily COVID-19 cases sent investors scampering for safety.
The Philippine Stock Exchange Index tumbled 33.90, while 211.93 points, or 2.9 percent, to 7,122.63 on a value turnover of P5.4 billion. Losers beat gainers, 111 to 73, with 49 issues unchanged.
The bellwether PSEi closed the year nearly flat at 7,122.63, down 17.08 points or 0.2 percent from the 2020 close of 7,139.71, as hopes of economic recovery was hampered by the persistent threat of COVID-19.
The All Shares index shed 10.6 percent year to date after ending the year at 3,818.12 points.
SM Prime Holdings Inc. of the Sy Group fell 4.5 percent to P33.90, while parent SM Investments Corp. declined 2.9 percent to P943. BDO Unibank Inc., the largest lender in terms of assets, sank 5 percent to P120.70.
PLDT Inc, the biggest telecommunications firm, dropped 3.1 percent to P1,812, while GT Capital Holdings Inc. of the Ty Group lost 2.7 percent to P540.
The county logged 1,623 COVID-19 cases on Thursday, the highest since November 21, 2021. The positivity rate also jumped to 6.6 percent, the highest daily rate since October 31, 2021, due to increased mobility during this holiday season.
The daily average value turnover for the year stood at P9 billion, up 22.5 percent from a year ago.
Foreign investors were net sellers by P2.32 billion, narrower than last year’s P128.57 billion. Foreign investors accounted for 36.1 percent of the trading value turnover.
The robust capital raising activities in the stock market this year, meanwhile, made investors active. Eight companies conducted initial pubic offerings this year while 11 had follow-on offerings. Four firms also conduced stock rights offerings while seven had private placements.
A 31-percent surge in retail investor participation was logged from 18.2 percent in 2019 and 26.9 percent in 2020.
“The active participation of local retail investors will likely continue to next year especially as we expect the upcoming IPOs to attract new investors. While this is a much welcome development, we also hope to see the gradual return of foreign funds to the Philippine stock market,” said PSE president and chief executive officer Ramon Monzon.
PSE will open 2022 with the back-to-back IPOs of Haus Talk Inc. and Figaro Coffee Group Inc.
Global stocks were mixed Thursday in slow end-of-year trading as markets weighed the efforts to limit the health and economic effects of the latest fast-spreading COVID-19 wave.
The Omicron variant has led to record new caseloads of COVID-19 worldwide, but markets have remained sanguine in light of research suggesting the health effects will be milder than with earlier variants.
Paris and Frankfurt both climbed but London fell, and Wall Street paused its rally, with both the Dow and S&P 500 retreating from all-time highs.“Worries about the Omicron variant have receded, but the speed of its spread is tempering sentiment,” analysts at Charles Schwab wrote.
The world’s top economy hit its highest-ever seven-day average of new COVID-19 cases Wednesday, and though the health impact is less severe the volume of infections is having an impact on the travel and service industries. With AFP