PSE index drops below 6,500

The local stock barometer dropped below the 6,500 level on Tuesday as the unabated rise in local coronavirus cases unnerved investors.

The main-share Philippine Stock Exchange index (PSEi) shed 60.85 points, or 0.93 percent, to close at 6,457.79.

The downturn was due to indications that the government may reimpose stricter lockdown measures if COVID-19 cases would continue to rise, said Luis Gerardo Limlingan, managing director at Regina Capital Development. This was as the COVID-19 death toll breached 15,000 on Monday, he noted.

Christopher Mangun said the lack of positive catalysts was curbing sentiment.

“Business restrictions are less restrictive under current MECQ (modified enhanced community quarantine) guidelines; however, the constant rise of cases continues to spook investors,” Mangun said.

However, he said prices were approaching levels that attracted buyers just a few weeks ago, which may lead to some bargain-hunting.

Except for the services, which eked out a marginal gain, all counters headed lower.

The financial, industrial and property counters declined by nearly 2 percent, while the holding firm and mining/oil sector shed less than 1 percent.

Total value turnover stood at P6.1 billion. There was P1.42 billion in net foreign selling for the day.

—DORIS DUMLAO-ABADILLA INQ