Finance chief orders SSS, GSIS to buy stocks, support market

Finance Secretary Carlos Dominguez III on Friday ordered state pension funds Social Security System (SSS) and Government Service Insurance System (GSIS) to ramp up investment in the stock market to provide support after almost a trillion pesos were wiped out from the local bourse due to COVID-19 scare.

“I have instructed GSIS and SSS to take advantage of the low stock prices as well as to support the stock market by at least doubling their daily average purchase volumes of last year,” Dominguez said in a message to reporters.

The Finance chief made the pronouncement after the Philippine Stock Exchange Index (PSEi) plunged to its lowest level in almost eight years, when it closed at 5,636.59 on December 18, 2012, as concerns over the COVID-19 threat put pressure on investor sentiment.

The local stock barometer’s drop of 9.71% is also its lowest plunge since October 27, 2008 when it dipped 13% during the Global Financial Crisis.

The PSE said P933.35 billion in Philippine stock market value was wiped out on Thursday.

On Thursday night, President Rodrigo Duterte addressed the nation that the Philippine government is restricting travel to and from Metro Manila starting March 15 until April 14 as part of community quarantine in a bid to contain the spread of coronavirus disease 2019 (COVID-19).

The Philippines raised Code Red Sub-Level 2 over the COVID-19 threat.

Socioeconomic Planning Secretary Ernesto Pernia said the community quarantine’s impact to the economy will be “minimal and ephemeral.”

The Philippines has so far 52 confirmed cases, including five deaths, as of Thursday, according to the Department of Health. —LDF, GMA News