Worst day of the year so far for PH stocks

The stock barometer slid to its worst level for this year on Wednesday as uncertainties over the country’s lockdown protocols in Metro Manila and neighboring provinces increased investors’ risk aversion.

Tumbling for the fourth straight session, the main-share Philippine Stock Exchange index (PSEi) fell by 59.46 points, or 0.94 percent, to close at 6,299.69 in very thin trade.

“The market is slowly giving up all the gains from the last rally that started in October. Inflation for the month of April came in at 4.5 percent, exactly the same as the month before, which should mean that prices are peaking and may begin to decline and should have generated some optimism,” said Christopher Mangun, head of research at AAA Equities.

“The steady decline in new COVID-19 cases has failed to generate optimism as it may not lead to an easing of restrictions in the coming weeks. Investors are now considering the possibility of staying under current restrictions until a substantial percentage of the population has been fully vaccinated,” he added.

Except for the mining/oil sector, which has benefitted from a more favorable regulatory environment, all counters slipped.

Value turnover stood at only P3.89 billion. There was P653.37 million worth of net foreign selling for the day.

Decliners outnumbered advancers, 114 to 92, while 43 stocks were unchanged. —DORIS DUMLAO-ABADILLA