Monday’s steep fall pushed total losses to P1.76 trillion since the start of the month, data from the Philippine Stock Exchange (PSE) indicated.
As of Monday’s trading close, market capitalization was about 27 percent lower than the end of September’s, a difference of about P6.51 trillion.
“As it is, our market is already one of the smaller markets in the world and with the drop today, our value has further diminished," Claire Quiray, Accord Capital Equities analyst, said.
She also noted that the local bourse was the second worst performer in the region for Monday, following Hong Kong’s 12.7-percent plunge.
The PSE’s main index has shed 239.66 points or 12.27 percent at 1,713, a four-year and one month low. Besides being the biggest one-day percentage drop in the stock exchange’s history, it was also the biggest one-day point drop after February 28, 2007 when the local bourse lost 263.84 points.
In a separate telephone interview, Francis Lim, PSE president and chief executive officer, said the market capitalization losses were a “necessary result" of the PSE’s huge decline on Monday.
“It is the peso equivalent of the stock market’s decline today. But we hope that with what the foreign governments are doing, the decrease in the stock market index will slow down. The local market has been tracking global markets," he said.
Lim also called on the government to expedite reforms to develop the capital markets in the Philippines to provide some cushion against global volatility.
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