UK COVID-19 variant worries weigh on stock market

Philippine shares closed in the red on Wednesday as worries over the further economic impact of the new  COVID-19 variant initially found in the UK triggered selling.

The benchmark PSEi shed 86.33 points or 1.21% to 7,047.85 at the closing bell. The broader All Shares lost 43.80 points or 1.02% to 4,230.14.

“The local market extended its losses as pandemic worries weighed on investor sentiment,” Philstocks Financial senior equity analyst Japhet Tantiangco said.

“This comes as the new COVID-19 variant spreads throughout the world putting at risk the global economic recovery,” he said.

The Hong Kong Center for Health Protection Communicable Disease earlier said that a traveller from the Philippines who arrived in Hong Kong has tested positive for the UK variant of COVID-19.

The World Health Organization (WHO) is aware of a new variant of COVID-19 that has emerged in the United Kingdom, but there is no evidence the strain behaves differently to existing types of the virus.

WHO's top emergencies expert Mike Ryan said the agency is aware that there are at least 1,000 individuals in England who tested positive for the variant, which has spread to many countries including the United States.

“Foreigners were net sellers with net outflows amounting to P685.39 million adding to the downward pressure in Wednesday’s trading,” Tantiangco said.

More than 22.675 billion shares valued at P11.907 billion, changed hands. Decliners led advancers, 146 to 74, and 45 issues were unchanged.—AOL, GMA News