Peso recovers amid coronavirus scare; PSEi plunges to 14-month low

The Philippine peso recovered on Friday, January 31, 2020, closing at P50.83:$1, following the World Health Organization's declaration of the novel coronavirus outbreak as a global health emergency.

Despite the peso's recovery, the Philippine Stock Exchange index (PSEi) plunged further on Friday, January 31, 2020, to its lowest in 14 months at 7,200.79 due to continued investor fears about the virus's spread and its potential impact on the global supply chain.

The PSEi has now entered bear territory, signifying a potential reversal of an 11-year bull cycle.

The Department of Health announced the first confirmed case of the novel coronavirus in the Philippines on Thursday, January 30, 2020.

Other domestic concerns weighing on the market include uncertainties over Metro Manila's water concession and the recent Taal volcanic activity.

Businesses likely to be negatively impacted by the coronavirus scare include travel, tourism, airlines, hotels, retail trade, and restaurants, among others.