By JAMES A. LOYOLA Reflecting a region-wide market bloodbath, the Philippine Stock Exchange index (PSEi) closed at its lowest level in four years yesterday after suffering its biggest single day drop since August 2015 after the government announced more local cases of COVID-19. The main index plunged 457.77 points or 6.76 percent to close at 6,312.61 as stocks bled across the board. PSE data show, this is the lowest level for the PSEi since it closed at 6,311.60 in January 26, 2016 and its biggest drop since the benchmark lost 487.97 points in August 24, 2015. Equity markets collapsed Monday as the rapidly spreading coronavirus fans fears for the global economy, while a crash in oil prices added to the panic with energy firms taking a hammering and wiping hundreds of billions off valuations. As the deadly disease claims more lives around the world, dealers are shedding riskier assets for safe havens, sending gold and the yen surging and pushing US Treasury yields to record lows. PSE volume was relatively stable at 1.15 billion shares worth ₱6.31 billion as losers flooded the boards at 204 versus only 30 gainers and 23 unchanged. “The sell off has been expected given the mounting COVID-19 infections in the Philippines,” said Philstocks Financial Senior Research Analyst Japhet Tantiangco. With confirmed cases now at 10 with 2 local transmission on record, Tantiangco said “worries have escalated on the negative economic impact of the epidemic from tourism, to supply chains, to work suspensions, to consumption, and ultimately, to the laborers who will be the number one victims once the spread worsens.” He noted that, “Full year 2019 earnings have been good so far, but have done very little to support the forward looking market.” Regina Capital Development Corporation Managing Director Luis Limlingan said that, adding to the bearish sentiment was the drop in oil prices does may weigh on US stocks. The Philippine equities market is following its Indonesia, Malaysia and Thailand peers, which entered a bear market in the last week of February, while Japanese shares are also poised for a bear run Monday. “Cash is king for now for we don’t know how the global economy is exactly affected. What disruption has the virus created and what extent of a slowdown that we will see in the global economy? The crash in global oil prices will create more panic,” said Manny Cruz, a strategist at Papa Securities. Foreigner funds have been fleeing Southeast Asian markets this year. They have pulled $393 million from Philippine equity funds since January. Valuations for the Philippine benchmark index have sank to 12.6 times earnings projected for the next year, the lowest since November 2011. “The rising number of the infected by the virus locally and globally is pushing the bear out of the cage,” said Jonathan Ravelas, chief market strategist at BDO Unibank, Inc. He added that, “It seems the fear is yet to peak and until we see the outbreak is contained and a recovery in confidence we could stay in bear territory for awhile. As countries pursue containment and isolation, growth could further slow down and bring with it earnings.” (With AFP report)