The local stock market fell after the health department reported the country’s first two cases of the Omicron variant.

The PSEi lost 109.41 points or 1.51 percent to close at 7,132.58 as the Property sector led the retreat across the board.

Volume jumped to 1.33 billion shares worth P11.35 billion as losers trounced gainers 142 to 58 with 54 unchanged.

“Philippine shares succumbed to panic selling as the first the country logged its first cases of the Omicron variant,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He noted that, “Investors are now speculating as to whether the cases will be contained, and if the government will adhere to stricter measures to protect from cases increasing.”

“Many are also anxious as the Federal Reserve kicked off its two-day policy meeting, which is expected to end with the central bank signaling a faster wind-down of its bond-buying program,” Limlingan added.

Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “Worries over the possible resurgence of infections and its adverse economic impact resurfaced as the Omicron variant is feared to be more transmissible than the Delta strain.”

He pointed out that the sell-off had conviction as seen by the high value turnover. However, foreigners were net buyers with net inflows amounting to P237.63 million.