By Arundhati Dutta
Indonesian stocks plunged on Wednesday after it reported a record surge in coronavirus cases, while the Philippines tumbled on worries that a multi-billion dollar stimulus package might be running into political turmoil.
Last week, most countries in Southeast Asia began re-opening their economies after months-long lockdowns, spurring a risk-on sentiment and helping Philippines post gains of about 10%.
"This (selling) is healthy. Everyone is waiting for the correction. We need a breather," said Luis Limlingan of Regina Capital, referring to the Philippine market.
Philippines' main index, fell 2%, after local media https://newsinfo.inquirer.net/1288342/dominguez-doubts-funding-for-stimulus-packages reported Finance Secretary Carlos Dominguez III deemed a proposed 1.3 trillion peso ($26.09 billion) stimulus package, which has already been passed by the House of Representatives, "unconstitutional".
Security Bank Corp fell 5.2% and BDO Unibank Inc dropped 4.5% and were among the top percentage losers on the index.
Indonesia's benchmark index fell 2.3%, with financials accounting for around a third of the losses. PT Bank Mandiri (Persero) Tbk shed about 7% and was the biggest drag.
The country said daily coronavirus cases breached 1000 for the first time on Tuesday and it recorded its biggest daily increase in infections for a second successive day on Wednesday.
"There are some concerns that Indonesia could face a second wave in number of cases, but also global markets saw some correction overnight, which Indonesian markets track, " said Andry E. Taneli, a portfolio manager at Ciptadana Asset Management in Jakarta.
In a bright spot, Thai shares rose 0.7%, on plans to re-open more businesses from as early as June 15, as the coronavirus outbreak appeared to be contained.
(Reporting by Arundhati Dutta; Editing by Amy Caren Daniel)
