PSEi slips on worries over possible extension of ECQ

The local stock barometer slipped back to the 6,500 level on Tuesday as investors awaited the government’s decision on whether to prolong the enhanced community quarantine (ECQ) as proposed by health experts to curb the resurgence of coronavirus infections.

The main-share Philippine Stock Exchange index (PSEi) fell by 62.23 points, or 0.94 percent, to close at 6,545.55.

It is too soon to conclude that the worst is over for the PSEi, local stock brokerage Papa Securities said.

The brokerage noted that the index was still heading for a long weekend in the coming days, “so money could still be pulled away from the table to de-risk ahead of that.” Furthermore, it noted that President Duterte had indicated that an extension of the ECQ beyond this week was under review. Any decision on this “could spell the market’s fate,” Papa Securities said.

The decline on Tuesday was led by the cyclical financial and property counters, which fell by 1.5 percent and 2.09 percent, respectively.

The holding firm, services and mining/oil counters all slipped by less than 1 percent.

The industrial counter added 1.04 percent.

Value turnover was scant at around P4.7 billion as many investors were on a holiday mode ahead of a long Lenten weekend break.

Market breath was neutral with 103 advancers almost at par with 104 decliners, while 46 stocks were unchanged.

The PSEi was dragged down by property giant SM Prime, which fell by 4.05 percent.

Metrobank lost 3.33 percent, while ICTSI and AEV both declined by over 2 percent. BDO shed nearly 2 percent.

Metro Pacific and Ayala Corp. both fell by over 1 percent, while JG Summit slipped by less than 1 percent.

Outside the PSEi, notable decliners included newly listed real estate investment trust DDMPR, which fell by 3.14 percent.

GMA7 fell by 2.23 percent while Dito lost 0.2 percent. INQ