PSEi, peso weakened amid Covid-19 fears

Investor concerns over the rising number of coronavirus disease 2019 (Covid-19) cases globally spooked investors, resulting in the weakening of the Philippine Stock Exchange index (PSEi) and the peso on Thursday.

After a two-day rally, the PSEi reversed its path and shed 9.71 percent, or 616.99 points, to 5,736.27 points, prompting the first trading halt in the local stock market since the 2008 global financial crisis.

These factors resulted in a risk-off sentiment among investors and negatively affected the domestic financial market, with All Shares declining by 8.30 percent.

The peso slipped to 50.85 against the US dollar from Wednesday's close, with trading volume totaling USD1.38 billion.

On Friday, the peso further weakened to P51.03 against the dollar, closing at its weakest in over two weeks, amid news of escalating domestic Covid-19 infections and the declaration of a community quarantine for Metro Manila.

The Philippine Stock Exchange index (PSEi) ended the week's trading at 5,793.94 points, up 1.005 percent or 56.67 points.

The peso depreciated against the greenback to 51.03 from its 50.85 close a day ago.

Volume on Friday reached 950.23 million shares amounting to PHP10.72 billion, with dollar volumes rising to USD1.42 billion.