Philippine Stocks Plunge Amid Delta Variant Fears and Banking Outlook Downgrade

The Philippine Stock Exchange (PSE) saw a significant decline on Wednesday, July 21, 2021, due to fears of renewed lockdown measures in response to the highly infectious Delta variant of COVID-19. The benchmark PSEi index dropped by 1.68%, or 110.99 points, closing at 6,476.21. This decline was exacerbated by concerns over Fitch Ratings' negative outlook on six Philippine banks and the potential for more stringent restrictions to curb the spread of the virus. All sectoral indices closed in the red, with financials experiencing the largest drop at 3.05%. Despite these challenges, there were no trading activities on Tuesday due to Eid’l Adha, a national holiday observed by Muslims.