PSEi recovers after 10% drop and circuit breaker

The Philippine Stock Exchange index (PSEi) experienced a volatile trading session, plunging over 10% and triggering a circuit breaker for the second consecutive session, before recovering to end with a 1.005% gain.

The PSEi closed at 5,793.94, recouping 57.67 points after a 15-minute trading halt aimed at allowing investors time to reassess.

For the week, the PSEi lost 976.44 points or 14.4 percent, cementing a bearish bias in the market.

The circuit breaker, which halted trading for 15 minutes, was triggered twice in a row for the first time in history since its introduction during the 2008 global financial crisis.

This rebound was fueled by bargain hunting and support from the government, with Finance Secretary Sonny Dominguez instructing the GSIS and SSS to take advantage of the low stock prices.

Global news, including central bank liquidity injections and government support measures, as well as a reported slowdown in the spread of COVID-19 in Wuhan, China, also contributed to the intraday recovery.

The strong value turnover of P10.71 billion, the second-highest for the year, indicated increased investor activity.