spot_img
29 C
Philippines
Thursday, March 28, 2024

PH, Asian stock markets plummet on virus worries

- Advertisement -

The stock market plunged Friday, along with the rest of Asia, as the coronavirus spread rapidly around the world with the WHO warning the deadly epidemic was now at a “decisive point.”

The Philippine Stock Exchange Index sank 179.93 points, or 2.6 percent, to 6,787.91, its lowest level in 38 months, on a value turnover of P11.4 billion. The index last closed at the 6,700-point level in December 2016. Losers overwhelmed gainers, 160 to 50, with 36 issues unchanged.

Jonathan Ravelas, chief investment strategist from BDO Unibank Inc., said the market decline was expected to persist, with the index likely hitting 6,500 points and possibly 6,000.

“The bloodletting is far from over for the outbreak is yet to peak and economies are yet to deal (with) the epidemic’s full damage,” Ravelas said.

“You need foreign funds for a substantial and sustainable rebound. Corporate earnings must show the Philippines is less affected by the virus for that to happen,” he added.

- Advertisement -

Christopher Mangun, head of research at AAA Equities, said the market could go down further if the virus infection got worse. “The market is already down and we don’t even have an outbreak in our shores,” he said.

Bank of the Philippine Islands, the third-biggest lender in terms of assets, slumped 7.4 percent to P74.10, while parent Ayala Corp. tumbled 5 percent to P662.50.

JG Summit Holdings Inc. of the Gokongwei Group fell 3.4 percent to P67.50, while Jollibee Foods Corp., the largest fast-food chain, shed 2.6 percent to P170.

The rest of Asian markets spiraled downwards Friday, extending a collapse in New York and Europe that has wiped trillions of dollars off valuations.

Tokyo, Shanghai, Sydney, Singapore and Seoul were among the bourses that fell more than three percent while Jakarta was hammered more than four percent.  

After Thursday’s battering, Asia picked up the baton. Tokyo tanked 3.7 percent, Shanghai dived 3.7 percent, Seoul gave up 3.3 percent and Sydney dropped 3.3 percent.

Hong Kong retreated 2.9 percent, while Singapore sank 3.1 percent, Jakarta dived 4.1 percent and Bangkok lost 3.4 percent.

Mumbai was 3.1 percent down and Wellington eased 1.5 percent. 

The casualties have put equities around the world on course to record their worst week since the global financial crisis more than a decade ago as investors run to the hills on fears the virus will smash the global economy.

And while the panic has already caused a bloodbath on trading floors, there are warnings there could be worse to come.

The Dow suffered its worst points loss on record, shedding almost 1,200 points, while its 4.4-percent drop marked the worst performance in two years. The S&P 500 and Nasdaq also tanked more than four percent, with London, Frankfurt and Paris all posting losses of more than three percent.

The VIX “fear” index is now at its highest level since 2011 during the European debt crisis.

President Donald Trump blamed the market plunge on the media coverage of the coronavirus and worries about Democrats winning the White House race.

The heavy selling came as authorities in California said they were monitoring some 8,400 people for COVID-19 after officials confirmed a woman had contracted it without traveling to any of the outbreak-hit regions. With AFP

- Advertisement -

LATEST NEWS

Popular Articles