Yet another sluggish week ahead for stocks on ECQ woes
Another week of sluggish trading is seen at the stock market this week as Metro Manila returns to strict quarantine protocols for two weeks starting Aug. 6.
Last week, the main-share Philippine Stock Exchange index (PSEi) lost a total of 250.51 points or 3.8 percent. The steepest drop was seen on Friday, when the main index fell by 226.3 points or 3.48 percent—marking the worst decline among all stock markets across the globe.
Sharp fall
This was as the government announced the reimposition of enhanced community quarantine (ECQ) restrictions effective Aug. 6 to 20.
But because the market had already fallen sharply last week, the pace of decline may be slower in the coming week, said Joseph Roxas, president of local stock brokerage Eagle Equities Inc.
Roxas sees the PSEi trading this week within a range of 6,200 to 6,400.
‘Ghost’ month
He added that the volume would likewise decline with the coming of the Lunar “ghost” month.
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. This period also typically coincides with the peak of summer holiday-making in Western markets, thereby reducing market volumes across the globe.
Since the start of the year, the PSEi has lost a total of 869.48 points or 12.2 percent from last year’s finish. —Doris Dumlao-Abadilla INQ
