PH bourse world’s worst as NCR reverts to ECQ | Inquirer Business
Close  
STOCK MARKET

PH bourse world’s worst as NCR reverts to ECQ

/ 05:16 AM July 31, 2021

The reimposition of tough lockdown protocols in Metro Manila for two weeks starting Aug. 6 caused a bloodbath in the local stock market, turning it into the world’s worst-performing bourse on Friday.

The main-share Philippine Stock Exchange index shed a hefty 226.3 points or 3.48 percent to close at 6,270.23, a two-month low, as investors priced in the impact of the tighter restrictions on the macroeconomy and corporate earnings moving forward. This marked the biggest single-day decline in six months and likewise the steepest fall among all main stock indices across the globe on Friday.

ADVERTISEMENT

“Investors sold off to close the weekend and the month to clean their portfolios ahead of the ghost month of August, while others kept to cash to assess the impact of reverting back to ECQ (enhanced community quarantine) after a week,” said Luis Gerardo Limlingan, managing director at Regina Capital Development.

The “ghost” month—which will start this year on Aug. 8 until Sept. 6—refers to a period in the Lunar calendar when Asian investors avoid making big-ticket investments and other big moves. This period also typically coincides with the peak of summer holiday-making in Western markets, thereby reducing market volumes across the globe. At the local market, all counters tumbled on Friday, led by the cyclical property counter, which slid by 4.98 percent.

FEATURED STORIES

The holding firm subindex fell by 3.31 percent, while the financial counter lost 2.99 percent.

The industrial counter shed 2.32 percent, while the services and mining/oil counters declined by 1.8 percent and 0.68 percent, respectively.

Value turnover for the day amounted to P6.27 billion.

Even as foreign ownership of local stocks is already at its lowest in history, another P1.6 billion worth of foreign funds flowed out of the market on Friday ahead of Metro Manila’s return to ECQ from Aug. 6 to 20.

There were 159 decliners that overwhelmed 47 advancers, while 42 stocks were unchanged.

Investors dumped shares of property giants Ayala Land and SM Prime, which fell by 4.12 percent and 6.97 percent respectively. They were the two most actively traded companies in the market.

—Doris Dumlao-Abadilla
Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Local Stock, Philippine Stock Exchange index
For feedback, complaints, or inquiries, contact us.

Curated business news

By providing an email address. I agree to the Terms of Use and
acknowledge that I have read the Privacy Policy.



© Copyright 1997-2021 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.