Omicron worries continue to drag Philippine shares

Philippine share prices continued to bleed on Wednesday, by over three percent, fueled by investors' flight from the local bourse in light of concerns over the Omicron COVID-19 variant.

The bellwether PSEi shed 253.82 points or 3.53% to 6,947.06 at the closing bell. The broader All Shares also bled 103.75 points or 2.705 to 3,734.38.

“Philippine shares suffered one of the biggest losses of the year as Omicron fears continue to rule market sentiment,” Regina Capital head of sales Luis Limlingan said.

Likewise, Philstocks Financial senior equity analyst Japhet Tantiangco said the local bourse plunged as COVID-19 worries continued to weigh on sentiment.

“Investors digested Moderna Inc.’s expectation of the existing COVID-19 vaccines being less effective against the Omicron variant,” Tantiangco said.

The World Health Organization (WHO) has classified the Omicron as a variant of concern, and many countries are racing to try and contain it.

The origin of the variant is currently unclear, but South African scientists were the first to announce the discovery on November 25.

The Philippines has placed several countries under the Red List until December 15, in efforts to prevent the spread of the variant.

The government said inbound international travel of anyone from these red list countries within the last 14 days prior to arrival in the Philippines are not allowed regardless of vaccination status.

“Foreign investors sold off with net outflows amounting to P1.25 billion,” Tantiangco said.

More than 1.37 billion shares valued at P14.4 billion, changed hands. Decliners led advancers, 165 to 40, and 42 issues were unchanged.—LDF, GMA News