Index back in the red as negative sentiment prevails

MANILA, Philippines — The benchmark Philippine Stock Exchange index went back to negative territory yesterday as market investors digest the government’s decision to extend the enhanced community quarantine.

The PSEi tumbled by 25.42 points, or 0.45 percent, to close at 5,626.25, while the broader All Shares index slipped by 15.26 points, or 0.45 percent, to settle at 3,399.98.

Most gauges ended in the red zone except for the industrial index. Total value turnover was thin, reaching only P4.8 billion. Market breadth was negative with 111 losers and 64 gainers, while 48 issues were left unchanged.

AB Capital Securities Inc. said the PSEi fell after the MSCI announced its decision to decrease the weight of the Philippine EM index.

“The local market fell after the MSCI announced it will decrease the weight of the Philippines in its EM index by 0.003 percent, effective at the close of May 29,” it said.

Luis Limlingan of Regina Capital said: “Local shares fell once again as investors evaluated the latest attempts to reopen the economy across the region and the failure among US politicians to finalize a new stimulus. US top infectious diseases official Anthony Fauci told lawmakers that he’s concerned about cities and states reopening without reaching checkpoints outlined by the administration in guidelines to help them decided when it’s safe.”

First quarter corporate earnings also started to trickle in and many listed companies have reported declines and a cut in their capital expenditures, adding to the negative sentiment in the market.