Index ends in red for 5th straight week
Iris Gonzales (The Philippine Star) - August 8, 2020 - 12:00am

MANILA, Philippines — Stocks ended yet another week in the red – the fifth straight week of losses – as the reimposition of a strict lockdown in the capital and a disappointing economic performance in the second quarter weighed heavily on investor sentiment, traders said.

The benchmark Philippine Stock Exchange index or PSEi slipped 56.56 points or 0.95 percent to end at 5,846.02 while the broader All Shares index went down by 18.08 points or 0.51 percent.

The sectoral gauges, on the other hand, were a mixed bag with mining and oil, services and industrial ending in positive territory.

Total value turnover reached P10.9 billion. Market breadth was negative with 113  decliners to 82 advancers, while 46 issues were unchanged.

“The PSEI can’t seem to catch a break as it ends with losses for a fifth consecutive week. Tighter lockdown restrictions on Metro Manila, as well as dismal second quarter gross domestic product (GDP) data have weighed heavily on sentiment.  Investors are having a hard time trying to see the light at the end of the tunnel as we are almost in the middle of the third quarter and coronavirus cases continue to climb. Supportive monetary policy adjustments or more fiscal stimulus from the government will strengthen the economy’s recovery and will also improve investors’ sentiment. The market may continue sideways until this happens,” Chris Mangun of AAA Southeast Equities said.

Meanwhile, the Philippine Stock Exchange announced that Emperador Inc. (EMP) will replace Semirara Mining and Power Corp. in the 30-company PSEi effective Aug. 17, 2020 as a result of the index review from July 2019 to June 2020.

Based on the PSE’s policy on index management, a company may be considered for inclusion in the PSEi if it has a float level of at least 15 percent, ranks among the top 25 percent by median daily value per month in nine out of 12 months and ranks among the highest in market capitalization. The Exchange may also take into account relevant financial criteria to ensure that index constituents are closely representative of the market or a particular sector.

EMP will also become a constituent of the industrial sector. The services sector will see the removal of Waterfront Philippines Inc. Meantime, there will be no changes in the composition of the financials, holding firms, property, and mining and oil indexes.

“The semi-annual review of indexes ensures that the Exchange’s benchmarks reflect the performance of the best securities in the stock market in general and its sectors,” PSE president and CEO Ramon  Monzon said.

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