PSEi gains 1% but marks third week of decline amid COVID-19 fears

The Philippine Stock Exchange index (PSEi) gained 1% on Friday, closing at 5,793.94, although it marked a third consecutive week of decline.

The market experienced significant volatility, triggering a 15-minute trading halt twice last week due to a more than 10% intraday fall, the first time since October 2008.

Investor concerns over the increasing spread of COVID-19 in the Philippines and its economic impact are driving the selloff.

Metro Manila began a month-long lockdown on Sunday, banning mass gatherings and travel to and from the region, which is expected to further increase negative market sentiment and hurt businesses.

Despite the volatility, bargain hunters emerged after circuit breaker activations, and an order from Finance Secretary Carlos Dominguez III for state-owned pension funds to buy stocks provided some support.

Net foreign selling increased last week, averaging P748.05 million daily.

Market volatility is expected to continue this week as investors grapple with uncertainties surrounding the pandemic.