PSEi falters on unclear MECQ guidelines
The local stock barometer opened the week on a sluggish note as investors sought clarity on the easing of quarantine protocols while COVID-19 cases were on the rise.
The main-share Philippine Stock Exchange index (PSEi) slipped by 26.53 points, or 0.41 percent, to close at 6,518.64, in line with mostly sluggish regional markets.
“The market ended slightly lower, mainly flat as investors remain unsure on where the market should go. The uncertainty on the pace of the economy’s recovery remains a major concern as new COVID-19 cases continue to rise,” said Christoper Mangun, head of research at AAA Equities.
“After last week’s surprising positive performance, investors were expecting stronger buying pressure at the beginning of the session. However, buyers were not interested, which caused selling pressure to pick up toward the end of the session. Clarity on the guidelines of the current MECQ (modified enhanced community quarantine) restrictions may be the reason why investors held back,” Mangun said.
MECQ is a quarantine level that is more relaxed than the enhanced community quarantine, which was declared in the National Capital Region and other neighboring provinces two weeks ago.
“We may see the PSEi move toward support at 6,400 with the main trend being sideways till the end of the week,” Mangun said.
Except for the financial counter, which eked out a marginal gain, all other counters ended in the red.
The mining/oil counter shed 1.32 percent, while other counters declined by less than 1 percent.
Value turnover for the day amounted to P5.97 billion. Foreigners remained net sellers to the tune of P869.24 million.
Decliners outnumbered advancers, 120 to 86, while 48 stocks were unchanged.
Investors sold down shares of URC, which lost 3.31 percent, while Ayala Land, Puregold, Ayala Corp., BPI and PLDT all declined by over 1 percent.
Metrobank and ICTSI dipped by less than 1 percent.
Outside the PSEi, Nihao shed 0.52 percent in relatively heavy volume, while Converge lost 1.74 percent.
LRW and Abacore both lost over 3 percent, while CityLand and Apollo shed less than 1 percent.
On the other hand, BDO gained 2.07 percent, while SM Investments added 0.73 percent.
Notable gainers outside the PSEi included AC Energy, which added 1.31 percent, while Dito rose by 0.36 percent.
