PSEi closes down on fears of COVID-19 resurgence overseas

The local stock barometer slipped on Tuesday as investors were unnerved by rising COVID-19 cases elsewhere in the world.

The main-share Philippine Stock Exchange index (PSEi) shed 15.04 points or 0.26 percent to close at 5,894.28.

“Philippine shares weakened amid concerns about the COVID-19 trajectory in Europe and illegal money movement by major global banks. Fears about a virus resurgence in Europe increased, with Boris Johnson convening crisis talks amid expectations of another lockdown in London,” said Luis Gerardo Limlingan, managing director at Regina Capital Development.

He also noted how Jakarta was adding thousands of beds for patients while the Czech health minister had quit as these countries struggled with surging COVID-19 infection. This was while the United States neared 200,000 COVID-19-related deaths, of which 15,000 came from California, he added.

“A spike in new COVID-19 cases abroad may have negatively affected the sentiment,” said AAA Equities head of research Christopher Mangun.

Outside the PSEi, investors sold down NOW Corp., which pulled back by 8.38 percent after Monday’s stellar performance.

A statement from former Department of Information and Communication Secretary Eliseo Rio that “NOW was not a fourth telco,” resulted in a deterioration in sentiment and a massive sell-off, Mangun said. “Investors also took the opportunity to take profits from Dito,” he added.

Dito, the third telco, fell by 3.16 percent.

The overall market was dragged down by the financial, industrial, mining/oil and property counters. —DORIS DUMLAO-ABADILLA INQ