The local stock market plunged on the last trading day of the year on fears that the recent rise in COVID-19 cases is the start of a new surge of infections due to the Omicron variant.
The PSEi fell 211.93 points or 2.89 percent to close at 7,122.63 as Holding Firms and Banks led the retreat across the board. Volume remained tepid at 623 million shares worth P5.38 billion as losers outnumbered gainers 111 to 73 with 49 unchanged.
“Philippine shares closed in the red reversing previous gains after fresh economic data indicated a recent uptick in COVID-19 infections might but the economy's recovery in jeopardy,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He noted that, “The entire country will remain under Alert Level 2 despite the uptick in COVID-19 cases and concerns over the Omicron variant.”
Philstocks Financial Research and Engagement Officer Claire Alviar said “The local bourse declined on the last trading day of the year due to the surge in COVID-19 daily cases with a positivity rate of 6.6 percent, higher than the World Health Organization (WHO)’s benchmark of below 5.00 percent.”
She added that, “Given the increasing cases, worries over the possible imposition of more stringent quarantine measures are rising as well despite the decision of the government to keep the current level until January 15.”