New record in virus cases pulls down PSEi for 3rd day

The local stock barometer slipped for the third straight session on Thursday as the number of new coronavirus disease cases continued to rise while foreign funds continued to flow out.The main-share Philippine Stock Exchange index (PSEi) shed 35.25 points, or 0.58 percent, to close at 6,029.01 in another thin trading session.

With total COVID-19 cases in the country breaching the 72,000 mark and new cases hitting more than 2,000 per day, the government has hinted it may bring back tighter lockdown protocols in the National Capital Region should total cases reach 85,000 by the end of the month.

“This poses another overhang for the PSEi apart from the incoming second quarter earnings figures already projected to be sour,” local stockbrokerage Papa Securities said.

One bright spot, however, was the continued peso appreciation against the US dollar, Papa Securities said. It sees the PSEi’s support level at 6,000 and secondary level at 5,600.

The PSEi was weighed down most by the industrial, holding firm, services and mining/oil counters, which all lost over 1 percent.

Total value turnover for the day stood at P4.26 billion.

The upcoming listing of Ayala Land-backed AREIT is seen to suck some of the liquidity in the stock market. This, while foreign funds continued to dump local equities, resulting in P710.59 million worth of net foreign selling for the day. —DORIS DUMLAO-ABADILLA