PSEi dips as new alert level strategy draws confusion

The benchmark Philippine Stock Exchange Index (PSEi) pulled back on Wednesday ahead of the implementation of a new pandemic alert system in Metro Manila that local and international business leaders described as unclear.

By the closing bell, the PSEi dropped by 0.58 percent, or 40.16 points, to 6,880.20 while the broader all-shares index was down by 0.4 percent, or 17.37 points, to 4,277.63.

While hopeful the new alert scheme would allow businesses to open during the health crisis, leaders from various business chambers said the guidelines were confusing.

Edgardo Lacson, acting president of the Philippine Chamber of Commerce and Industry, said the rules were difficult to remember and further called these “an economic placebo that will merely delay the full opening of the economy.”

From the American Chamber of Commerce of the Philippines, executive director Ebb Hinchliffe said he expected further clarity to emerge in the coming days.

Regional markets also ended lower on Wednesday as Delta variant outbreaks around the world clouded the outlook for economic recovery.

The poor investor sentiments came even as United States inflation data released overnight posted a smaller-than-expected gain. This helped calm concerns the Federal Reserve would accelerate the timetable for trimming asset purchases.

Data from the PSE showed all subsectors closing in the red, save for holding companies, which gained 0.78 percent.

A total of 1.5 billion shares valued at P7.55 billion changed hands with decliners outnumbering gainers, 128 to 64, and 51 companies closing unchanged.

Converge ICT Solutions Inc. was the most actively traded on Wednesday as it gained 1.45 percent to P35 per share.

It was followed by Monde Nissin Corp., up 4.05 percent to P19; AC Energy Corp., down 0.98 percent to P10.10; Globe Telecom, down 4.22 percent to P3,040; and Ayala Land Inc., down 2.98 percent to P32.60 per share.

Other actively traded firms were BDO Unibank Inc., down 2.04 percent to P110.70; Ayala Corp., down 0.93 percent to P803; PLDT Inc., up 0.34 percent to P1,485; SM Investments Corp., up 2.73 percent to P1,015; and Aboitiz Power Corp., up 5.21 percent to P30.30 per share.