Shares fall for fear of extended lockdown

PHILIPPINES shares closed in the red on Tuesday over fears of an extended lockdown in Metro Manila and after the peso closed lower against the greenback on Monday.

The Philippine Stock Exchange index (PSEi) fell 70.90 points or 1.01% to close at 6,885.36 on Tuesday, while the broader all-stock index fell 45.23 points or 1 .04% to end at 4,284.72.

“[Fears] the prolonged lockdown and vaccination slowdown offset previous optimism about reopening the economy, boosting overseas sales as the PSEi approached 7,000, ”said Cristina S. Ulang, head of the economy. First Metro Investment Corp. research in a Viber message. “Other headwinds include rising inflation this month and currency weakness.”

The health ministry said Metro Manila could remain under Alert Level 4 of the government’s Alert Level System in October, as the current quarantine classifications expire on Thursday, September 30. New restrictions for the region are expected to be announced this week.

Meanwhile, the peso fell to 51 P to the dollar on Monday, its weakest result in more than a year, amid concerns about the upcoming decline in asset purchases by the US Federal Reserve as well as rising prices. oil price. It was also 35 centavos lower than its P50.65 close on Friday.

“The local stock exchange closed lower with most Asian markets, with market participants remaining cautious about the Evergrande debt crisis in China and its potential impact on the wider economy,” said Darren Blaine T. Pangan, trader at Timson Securities, Inc., in a separate Viber post.

Most sector indices closed in the red on Tuesday with the exception of financials which rose 2.63 points or 0.18% to end at 1,414.16, and real estate which rose 0.32 point or 0.01% to 3,030.28.

Meanwhile, services lost 35.50 points or 1.82% to close at 1,912.70; manufacturers lost 177.77 points or 1.73% to 10,094.37; mining and petroleum lost 152.05 points or 1.64% to 9,092.13; and the holding companies lost 89.54 points or 1.29% to end at 6,847.85.

Turnover in value jumped to P15.04 billion on Tuesday with 2.14 billion issues changing hands, almost twice the P7.61 billion with 1.64 billion shares registered the day before.

The drops outnumbered the advances, 135 to 75, while 38 names closed unchanged.

Net foreign sales climbed to 1.94 billion pesos on Tuesday, from 623.43 million pesos seen on Monday.

“In the next few days, we’ll see if its closest support at 6,780 holds. 7,000 appears to be the important area of ​​resistance to watch, ”said Mr. Pangan of Timson Securities.

“The final reading of the PMI (purchasing managers index) and the end of [the third quarter] will continue to garner investor attention for the remainder of the week, ”Regina Capital Development Corp. Sales Director Luis A. Limlingan said in a Viber message. – KCG Valmonte

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