PSEi off to weak start on COVID-19 fears
The local stock market started the week on a sluggish note, bucking the upswing elsewhere in the region, due to concerns on rising cases of local coronavirus transmission.
The main-share Philippine Stock Exchange index (PSEi) shed 44.25 points, or 0.69 percent, to close on Monday at 6,328.41.“Asian stock markets rallied today led by Chinese shares on encouraging comments from state media on how a healthy bull market will be extremely important to its economy in the future. The PSEi did the opposite and ended slightly lower as investors are worried about a surge in new coronavirus cases and reports that the virus has mutated and is more contagious,” said Christopher Mangun, head of research at AAA Equities.
Trading volumes slowed down as buyers stayed on the sidelines, he added.
“The market is afraid that we may return to ECQ (enhanced community quarantine),” said veteran stockbroker Joseph Roxas, president of Eagle Equities Inc.The government has relaxed lockdown protocols in Metro Manila and other key regions starting June 1, paving the way for the reopening of businesses, but the unabated rise in the daily COVID-19 infection is feared to bring back strict ECQ measures that could further depress corporate earnings and the domestic economy.The decline was led by the financial counter, which lost 2.2 percent.
The industrial, holding firm and property counters all declined by less than 1 percent.
On the other hand, the services counter added 1.33 percent while the mining counter added 2.87 percent.
Value turnover was thin at P6.15 billion.
Market breadth was neutral. There were just as many advancers as decliners (103).
BDO, SM Prime and Metrobank all tumbled by over 2 percent, while SM Investments, Ayala Corp. and URC all lost over 1 percent. Ayala Land and LTG shed less than 1 percent.
On the other hand, the PSEi’s decline was tempered by the gains of Megaworld, which rose by 2.52 percent.
One notable gainer outside the PSEi was Manila Water, which surged by 8.65 percent. —Doris Dumlao-Abadilla INQ
