Stocks turn lower as economic recovery concerns resurface

MANILA, Philippines — Local share prices stumbled lower yesterday as rising COVID-19 cases in China reinforced investor concerns over the prospects for a global economic recovery.

More than 28 million people are now under lockdown in China after the country reported the highest number of new COVID-19 cases in more than 10 months.

The retreat also followed the late slide in Wall St. after a worse-than-expected US jobs report  tempered President-elect Joe Biden’s plans to propose a $1.9-trillion package to help in the  recovery from the coronavirus pandemic.

The benchmark Philippine Stock Exchange index (PSEI) finished in negative territory, closing 34.69 points or 0.47 percent lower at 7,238.46.

The broader All Shares index likewise slipped 8.46 points or 0.19 percent to close at 4,342.48.

“Local shares closed lower as investors digested the biggest jobless claims surge since March last year, outweighing the unveiling of Biden’s stimulus plan,” said Luis Limlingan of Regina Capital.

Markets have been mostly charging higher amid growing optimism that the rollout of coronavirus vaccines will set the stage for a big rebound for the economy and corporate profits later this year.

Investors are hoping that more government stimulus can tide the economy over until COVID-19 vaccines get daily life back toward normal and trigger a powerful recovery later this year.