PSEi plunges as NCR returns to stricter quarantine

MANILA, Philippines — Market investors were spooked yesterday after President Duterte decided to put Metro Manila and nearby areas back to modified enhanced community quarantine (MECQ) as a response to the plea of health workers.

The benchmark Philippine Stock Exchange index (PSEi), the stock market gauge, plunged by 212.53 points, or 3.58 percent, to finish at 5,715.92.

Likewise, the broader All Shares index nosedived by 101.81 points or 2.90 percent to end at 3,398.46.

All indexes were down with the property sector suffering the biggest decline of 5.11 percent.

This after President Duterte heeded the call of health workers for a time-out to give the country’s health system a break and placed Metro Manila and nearby provinces back to MECQ, a stricter lockdown compared to general community quarantine.

The stricter quarantine would last until Aug.18, a move analysts said could hamper the economy’s recovery efforts.

Total value turnover reached P6.6 billion. Market breadth was negative with 154 losers and 51 gainers, while 39 issues were left unchanged.

Chris Mangun gave this comment: “Investors rushed to close positions after Metro Manila and surrounding cities were placed under stricter quarantine restrictions for the next two weeks. The move caught most investors off guard as the government struggles to restart an ailing economy. The property index was hurt the most.”

He said the only outlier yesterday was food and beverage manufacturer URC after its second quarter earnings came in way above expectations and is one of the few companies that continue to see growth despite the pandemic.

URC shares rose 2.12 percent to P125 per share.