PSEi dives to 6,500 level as virus comes ravaging

The rising number of local coronavirus infections caused a bloodbath at the market on Monday, dragging down the stock barometer to the 6,500 level. The main-share Philippine Stock Exchange index (PSEi) lost 176.09 points or 2.62 percent to close at 6,552.46. Elsewhere in the region, trading sentiment was mostly sluggish.

“The market collapsed as the possibility of a hard lockdown gets higher and higher as the days go by. Increased selling pressure coupled with a lack of buying at current levels caused most blue chips to take substantial losses,” said Christopher Mangun, head of research at AAA Equities.

He noted only two PSEi issues ended higher: Aboitiz Power, because of its cash dividend this week and Globe Telecom, which has mainly moved sideways over the last eight months. Aboitiz Power rose by 2.6 percent, while Globe added 1 percent.

The main index broke support at 6,600, but was able to hold at 6,500 and recover slightly towards the close on bargain-hunting as selling pressure diminished, Mangun said. The PSEi may stay above 6,500 in the coming sessions unless the government reimposes more stringent lockdown measures and thus hurt it further, according to Mangun.

All counters faltered, in particular the service and mining/oil counters, which both dropped by over 3 percent.

The financial, industrial, holding firm and property counters all declined by over 2 percent. Value turnover for the day amounted to P9.22 billion. Net foreign selling amounted to P602.86 million.

Decliners overwhelmed advancers, 207 to 28, while 32 stocks were unchanged.

Conglomerate Ayala Corp. fell by 5.42 percent, while Metrobank and Security Bank both lost over 4 percent.

BDO, ICTSI, URC and PLDT all slipped by over 3 percent, while Ayala Land, SM Prime and GT Capital all declined by over 2 percent.

SM Investments and Jollibee lost over 1 percent.

Outside the PSEi, investors dumped shares of Dito, which lost 13.44 percent. It was the day’s most actively traded company. INQ