Hit by virus and inflation worries, PSEi plunges to 6,700 level

The local stock barometer slipped to the 6,700 level on Monday as investors expressed worries over the attack on Saudi Arabia’s oil facilities and the resurgence in local COVID-19 cases.

The main-share Philippine Stock Exchange index (PSEi) slid by 124.45 points or 1.81 percent to close at 6,756.92.

Apart from market liquidity being sucked out by the upcoming DoubleDragon REIT offering, Eagle Equities president Joseph Roxas said investors expressed concern over the fresh attacks on Saudi Arabia’s oil facilities and the impact on oil prices.

The Philippines is still recovering from recent news that inflation rate hit 4.7 percent in February, overshooting the 4-percent upper end of the Bangko Sentral ng Pilipinas’ target for the second straight month. A surge in world oil prices could further put inflationary pressures on local commodities.

The Philippines also reported a rise in COVID-19 cases in recent days, which could force the government to tighten people’s movement anew.

Local stock brokerage Papa Securities said an initial support for the PSEi would be at the 6,600 level, while the 7,100 resistance would likely hold in the near term.

“Local shares faltered as investors returned to the US market on the back of better-than-expected jobs report and the passing of another relief bill in the [US] Senate, boosting hopes for a swift economic recovery,” said Luis Gerardo Limlingan, managing director at Regina Capital Development.

All counters tumbled, led by the financial and mining/oil counters, which both slumped by over 3 percent.

The property counter declined by 2.59 percent, while the industrial and holding firm counters both fell by over 1 percent.

The services counter slipped by less than 1 percent.

Value turnover for the day amounted to P9.85 billion. There was net foreign selling of P497.84 million.

Decliners overwhelmed advancers, 201 to 38, while 29 stocks were unchanged.

BDO shed 4.33 percent, while Megaworld lost 3.75 percent.

SM Prime declined by 2.97 percent, while Ayala Land slipped by 1.95 percent.

Metrobank, SM Investments and URC all shed less than 1 percent.

Outside the PSEi, notable decliners included Da Vinci Capital and BHI, which slid by 27 percent and 21.5 percent, respectively.

PHA lost 16.67 percent while Merry Mart and Apollo Global declined by 16.67 percent and 12.55 percent, respectively.

Basic Energy fell by 10 percent.

Dito, the most actively traded company having launched its commercial operations also yesterday, fell by 8.79 percent.

Greenergy declined by 6.03 percent, while AC Energy shed 5.32 percent.