The local stock market saw its worst freefall since the global financial crisis of 2008 on Thursday as the investors fled to safer havens amid the worsening coronavirus (COVID-19) pandemic.

ADVERTISEMENT

The main-share Philippine Stock Exchange index (PSEi) slid by 616.99 points or 9.71 percent to close at 5,736.27.

This marked the PSEi’s lowest finish since Dec. 18, 2012. In terms of percentage decline, this was the worst bloodbath seen since Oct. 27, 2008.

“While a technical rally is in order, such is expected to be temporary. We are just in the first wave of a major bear wave. The lesson from 1929: the infamous ‘Black Thursday’, ‘Black Monday’ and ‘Black Tuesday’ were just the beginning!,” said Ron Acoba, chief investment strategist at equities research provider Trading Edge.

For the first time in recent history, the PSE imposed a 15-minute trading halt on the entire market close to 3 pm when the PSEi’s decline breached 10 percent, applying the circuit breaker introduced in 2008.

The index hit an intra-day low of 5,697.13- representing a decline of 10.33 percent – when the circuit break was triggered.

Based on technical readings, Acoba said a minor support could be found at the 2013 low of 5,700 while the next support levels should be at 4,500 and then at 3,800.

Subscribe to Inquirer Business Newsletter

Read Next

EDITORS' PICK

MOST READ