PSEi dives as market fears return to stricter quarantine

The benchmark Philippine Stock Exchange index (PSEi) plummeted on Wednesday, bucking positive sentiments across the region and a rally in Wall Street overnight.

The drop followed the continued rise in new coronavirus infections and amid President Duterte’s tirade against so-called oligarchs. This also dampened prospects for large business groups outside the President’s circle.

By the closing bell on Wednesday, the PSEi ended lower by 2.53 percent, or 156.30 points, to 6,016.51. The broader all-shares index was also down 2.25 percent, or 81.49 points, to 3,544.36.

“The PSEi collapsed today as investors believe stricter quarantine restrictions will be reimposed because of surging coronavirus cases,” said Chris Mangun, research head at stockbrokerage firm AAA Equities.

“The latest jobs report from the labor department, which shows an increasing number of permanently displaced employees, may have also affected the sentiment. Sellers rushed to unload positions across the board. Several blue chips closed at their low for the day,” he added.

Poor sentiments were across the board as all subsectors ended in the red. The biggest loser was industrial stocks, which fell 3.04 percent. Holding firms and services shed 2.81 percent and 2.47 percent, respectively.

A total of 2.66 billion shares valued at P7.28 billion changed hands on Wednesday. Decliners outpaced gainers 166 to 48, while 32 companies closed unchanged.

Property giant SM Prime Holdings was the most actively traded on Wednesday as it gained 0.32 percent to P31.70 per share.

It was followed by BDO Unibank Inc., down 3.61 percent to P89.50; SM Investments Corp., down 2.57 percent to P911; Ayala Land Inc., down 4.48 percent to P32; and Universal Robina Corp., down 4.42 percent to P119 per share.