Stocks fall on extension of quarantine measures

stocks fall on extension of quarantine measures - Stocks fall on extension of quarantine measures

By Denise A. Valdez, Senior Reporter

THE MAIN INDEX ended lower on Tuesday as investors reacted to the extension of quarantine measures in Metro Manila and key areas until the end of October.

The bellwether Philippine Stock Exchange index (PSEi) trimmed 19.79 points or 0.33% to close at 5,841.60, while the broader all shares index slid 9.88 points or 0.28% to end at 3,521.10.

“The market has been on a downtrend since it failed to break the 6,000 psychological resistance, and it seems that the market will continue this performance amid the lack of a major positive catalyst,” Philstocks Financial, Inc. Research Associate Piper Chaucer E. Tan said in a text message.

The PSEi has not entered the 6,000 level since mid-September, with the last time being on Sept. 15 when it hit 6,018.21. Foreign investors have also been net sellers for 13 straight days due to the lack of an impetus in the local scene.

“I think that the major concern here for investors is that the quarantine measures have not been lifted to a much eased restriction,” Mr. Tan said. “This signalled that the economic recovery will be prolonged versus the initial estimates.”

President Rodrigo R. Duterte decided to maintain the current quarantine protocols in the nation’s capital for another month, which means the number of industries allowed to reopen will remain limited for a longer period.

The number of local coronavirus cases likewise continues to grow by the thousands every day, with 3,073 new cases reported on Monday to bring the total tally to 307,288.

Aside from the extended quarantine, quarter-end window dressing affected the PSEi’s decline on Tuesday, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said.

“Shares closed weaker on low volume once again with investors getting ready for the quarter-end window dressing tomorrow (Wednesday),” Mr. Limlingan said in a mobile message. He noted others also chose to stay on the sidelines while awaiting a new fiscal stimulus in the United States.

Value turnover on Tuesday stood at P5.67 billion, up from the previous day’s P5.08 billion. Some 1.45 billion issues switched hands, against the last session’s 1.14 billion issues.

Sectoral indices were mixed. Financials grew 7.88 points or 0.69% to 1,150.16; mining and oil added 25.30 points or 0.43% to 5,870.49; and industrials climbed 31.23 points or 0.39% to 7,937.85

On the other hand, holding firms lost 58.31 points or 0.95% to 6,027.47; services shed 7.26 points or 0.49% to 1,447.55; and property slipped 11.10 points or 0.41% to 2,697.61 at the end of Tuesday’s session.

Decliners outnumbered advancers, 109 against 88. Some 52 names ended unchanged.

Net foreign selling declined to P551.77 million on Tuesday from P1.81 billion the previous day.

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