Index snaps 2-day rally on lingering coronavirus worries

MANILA, Philippines — Local shares cut short a two-day rally to fall below the 7,000 mark anew yesterday as investors await the outcome of the central bank’s rate-setting meeting.

Around Asia, stock markets also followed Wall Street lower as anxiety about the economic fallout from rising coronavirus infections in the US and Europe clashed with optimism about a possible vaccine.

“Concerns over the near-term impact of the recent spike in cases overshadowed additional positive developments on the vaccine front,” said Prakash Sakpal and Nicholas Mapa of ING in a report.

The Philippine Stock Exchange index or PSEi lost 54.16 points or 0.76 percent to close lower at 6,997.62.

The broader All Shares index also suffered a 17.33-point or 0.41-percent drop to settle at 4,127.54.

Regina Capital Development Corp. managing director Luis Limlingan said investors awaited the outcome of the latest Bangko Sentral meeting before making any moves.

The BSP’s policy-making Monetary Board surprised the market yesterday afternoon, slashing interest rates by 25 basis points as the domestic economy sank deeper into recession in  the third quarter.

“Philippine shares took a breather as the recent rally took an inevitable pause,” Limlingan said.

Market breadth, however, stayed positive as advancers continued to pummel decliners, 114 to 99, while 60 shares were unchanged.

Value turnover also sustained its expansion to P11.12 billion from the previous day’s P10.93 billion