PSEi bleeds 6.76% to post worst close in over four years

Share prices on the Philippine Stock Exchange (PSE) recorded the worst drop so far on Monday, dragged down by growing concerns over the coronavirus disease 2019 (COVID-19) and the decline in global oil prices.

The local stock barometer plunged by 457.77 points or 6.76% to 6,312.61, the worst showing of the index in over four years since it closed at 6,311.60 on January 26, 2016.

Meanwhile, the broader All Shares index dropped 244.33 points or 5.55% to 3,815.22.

Sought for comment, Timson Securities equity analyst Jervin De Celis attributed Monday's drop on developments overseas, as well as the spread of COVID-19 in the country.

"The collapse of the talks among OPEC (Organization of Petroleum Exporting Countries) led to Saudi's decision to slash prices and spooked investors and sent down the price of oil in the world market by 30%," he said in a mobile message.

"This event also happened as the number of COVID cases in the Philippines rises which, I guess, dampened market sentiment today," De Celis elaborated.

His sentiment was mirrored by Luis Limlingan, head of sales at Regina Capital Development Corp.

"Philippine shares had one of the worst finishes in history as OPEC and Russia failed to reach consensus on a cut," Limlingan explained.

"Oil markets tumbled more than 30% after the disintegration of the OPEC+ alliance triggered an all-out price war between Saudi Arabia and Russia that is likely to have sweeping political and economic consequences," he elaborated.

More than 1.144 billion shares, valued at P6.275 billion, changed hands. Decliners led advancers, 204 to 30, and 23 issues were unchanged. — BM, GMA News