Connect with us

Hi, what are you looking for?

Economy

PSE index plunges on fears of tighter lockdown

PHILIPPINE SHARES closed in the red on Monday as parts of the country adopted stricter lockdown measures amid the continued surge in new coronavirus disease 2019 (COVID-19) cases.

The benchmark Philippine Stock Exchange index (PSEi) tumbled by 176.09 points or 2.61% to end at 6,552.46, while the broader all shares index went down by 109.71 points or 2.7% to 3,949.87.

“The market collapsed as the possibility of a hard lockdown gets higher and higher as the days go by. Increased selling pressure coupled with a lack of buying at current levels, caused most blue chips to take substantial losses,” AAA Southeast Equities, Inc. Research Head Christopher John J. Mangun said via e-mail.

“The surge in cases and the implementation of additional restrictions such as the curfew in Metro Manila has clouded our economic outlook,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“The uncertainties on our economic outlook caused by our current COVID-19 situation is expected to continue weighing on investor sentiment,” Mr. Tantiangco added.

The country logged 5,404 new coronavirus disease 2019 cases on Monday, the Health department reported. This brought the country’s infection tally to 626,893, with active cases at 53,479.

COVID-19 infections in the Philippines could hit an all-time daily record of 8,000 by end-March if the government fails to contain the pandemic, according to researchers from the University of the Philippines.

Cases could reach as many as 20,000 by mid-April, Fredegusto Guido P. David, a research fellow at UP’s OCTA Research Group, told ABS-CBN News Teleradyo on Sunday.

All sectoral indices closed in the red on Monday. Mining and oil dropped by 320.67 points or 3.66% to close at 8,440.78; services declined by 43.84 points or 3.01% to 1,412.38; holding firms slumped by 198.59 points or 2.85% to 6,750; property went down by 96.53 points or 2.85% to 3,263.71; financials decreased by 35.98 points or 2.55% to 1,374.30; and industrials fell by 187.37 points or 2.18% to finish at 8,402.59.

Value turnover climbed to P9.23 billion on Monday with 5.56 billion shares switching hands, up from the P6.87 billion with 3.41 billion issues traded on Friday.

Decliners outnumbered advancers, 207 versus 28, while 32 names closed unchanged.

Net foreign selling also surged to P1.12 billion on Monday from the P602.86 million seen on Friday.

“[Monday]’s steep drop gives opportunities for bargain hunting. However, we may not see a significant rebound as selling pressures may remain amid lingering COVID-19 concerns. Thus, we may see sideways movement from the market,” Mr. Tantiangco said.

AAA Southeast Equities’ Mr. Mangun added that the PSEi may stay above 6,500 in the coming sessions unless restrictions on movement are tightened further. — Keren Concepcion G. Valmonte

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Investing

A cabinet split is hampering the government’s efforts to deal with the nationwide shortage of lorry drivers that threatens fuel supplies at some petrol...

Investing

Pubgoers are flocking back to their locals, according to figures that drew a cautious toast from the industry but also prompted warnings of fresh...

Investing

Ministers are backing a multibillion-pound plan to build another large-scale nuclear power plant in Britain to ease pressure on electricity supplies as the country...

Economy

The Philippines’ balance of payment position (BoP) hit $1.044 billion in August, the highest in four months, due to increased special drawing rights (SDR)...

Economy

Consumers were less pessimistic in the third quarter as more jobs opened up, but business sentiment turned sour amid a fresh surge in coronavirus...

Economy

The Philippine central bank fully awarded the short-term securities it sold at an auction on Friday, even as rates rose on growing inflation fears....

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!