Index slides as vaccine rollout drags

MANILA, Philippines — Stocks closed lower for a third day yesterday as investors continue to wait for better leads on the progress of the Philippine government’s vaccine acquisition plan.

The bellwether Philippine Stock Exchange index or PSEi ended in the red at 7,198.45, down 4.99 points or 0.07 percent, while the broader All Shares gauge slipped 1.56 points or 0.04 percent to close at 4,319.74.

First Metro Investment Corp. head of research Cristina Ulang said in a recent briefing that business conditions are improving with the vaccine rollout and reopening of economies, leading to rising investor risk appetite.

At the same time, she said investors are factoring new developments surrounding the COVID-19 situation such as the mutation of the virus, possible second wave of infections and renewed mobility restrictions which would impact on the economy.

This, she said, would delay government spending and cause interest rates to rise more than expected, pushing the world economy deeper into recession.

“Investors are still uncertain and are not willing to justify higher valuations for blue chips. Most are on the sidelines, waiting for more signs of economic recovery. We may see the main index continue lower in the coming days,” said.