Stocks slump anew on COVID worries

MANILA, Philippines — The benchmark Philippine Stock Exchange index (PSEi) slumped back to negative territory yesterday as worries over the rising number of COVID-19 cases remain.

The PSEi finished at 6,192.58, down 92.92 points or 1.47 percent, while the broader All Shares index ended at 3,645.52, down 38.23 points or 1.03 percent.

All sectoral indexes finished in negative territory except for the mining and oil.

Total value turnover reached P5.091 billion. Market breadth was negative with 104 losers and 87 gainers, while 39 issues were left unchanged.

Commenting on yesterday’s trading session, Chris Mangun of AAA Securities said investors are worried that a reimposition of stricter quarantine measures would eliminate hopes of an economic rebound.

“The PSEi resumed its decline as investors remained cautious amid surging coronavirus cases. A reimposition of stricter lockdown measures will eliminate hopes of an economic rebound in the third quarter.  We may see the main index move lower and test support at 6,040 today (July 10, 2020),” Mangun said.

On the other hand, global stock markets climb higher as investors are optimistic that fiscal stimulus will save second quarter earnings.

“The intensified rise in local COVID-19 cases continued to weigh on investor sentiment, causing the market to decline by 92.92 points or 1.47 percent at 6,192.58. Volume and value turnover reached 1.4 billion and P5.1 billion, respectively,” Philstocks Financials said.