Asia rally fails to lift PSEi as pandemic rages in PH

The local stock barometer failed to ride on the upswing seen elsewhere in the region on Monday as an escalating number of new coronavirus cases in the country kept most investors on the sidelines.

The main-share Philippine Stock Exchange index (PSEi) shed 24.81 points, or 0.4 percent, to close at 6,172.57 as foreign investors continued to dump local stocks while domestic COVID-19 cases breached the 56,000 mark.“Local shares closed lower on refreshed pandemic fears, and with investors looking ahead to the US earnings season,” said Luis Gerardo Limlingan, managing director at local stock brokerage Regina Capital Development Corp.

Limlingan took note of US President Donald Trump’s comment during the weekend that a second phase of the US-China trade deal would be “unlikely” given the deteriorating relationship between the two nations. White House economic adviser Larry Kudlow also said it was “unwise” for Americans to invest in China right now.

“Moreover, it is reported that the United States is planning to make an announcement this week related to escalating tensions in the South China Sea,” Limlingan also noted.At the local market, the PSEi was weighed down most by the financial, holding firm and property counters, which all slipped by less than 1 percent.On the other hand, the mining/oil counter added 1.26 percent, while the industrial and services counters also firmed up.Value turnover for the day was thin at P4.64 billion. There was P849.32 million worth of net foreign selling for the day.

There were 136 decliners that overwhelmed 69 advancers, while 34 stocks were unchanged.

The PSEi was weighed down most by First Gen, which lost 5.01 percent as sister company ABS-CBN lost its bid for a fresh 25-year franchise.

BDO, the day’s most actively traded counter, declined by 3.38 percent, while Megaworld, SM Prime and Puregold all lost over 2 percent.

Ayala Corp., Metrobank and Metro Pacific all slipped by less than 1 percent. ICTSI fell by 0.51 percent.

On the other hand, Jollibee and URC both rose by over 2 percent.

Incumbent telco players PLDT and Globe Telecom firmed up by 2.65 percent and 0.19 percent, respectively.

One notable gainer outside the PSEi was GMA7, which advanced by 10.28 percent on expectations that it will corner a big chunk of advertising funds now that its rival has lost its franchise.Other telco-related stocks also gained, like Now and Dito, which rose by 7.59 percent and 1.33 percent, respectively. INQ