Virus variant spoils market recovery anew

MANILA, Philippines — The stock market downturn continued yesterday as the Philippine Stock Exchange index (PSEi) further fell below the 7,000 mark.

The PSEi lost 113.55 points or 1.62 percent to close at 6,863.61, while the broader All Shares index slipped 37.64 points or 0.90 percent to end at 4,131.32.

Traders said concerns were raised anew over the new COVID-19 variant, which is again causing a spike in the number of cases in the Philippines.

The rise in cases is deemed detrimental to the economy as this could again lead to stricter restrictions which market investors feel would only pull back whatever gains the economy may have achieved on the long road to recovery.

The Department of Health said the total number of cases has picked up again, approaching the 2,000 new cases per day. This followed the celebrations and the increase in in-person gatherings after the holiday season.

Total value turnover reached P10.683 billion, although market breadth was positive, 112 to 101, while 50 issues were unchanged.

Traders said  losses were most defined in large-cap property stocks.

Investors also priced in the 2020 economic data, which is set to be released today.

The economy is expected to have contracted by 10.4 percent in the fourth quarter, bringing the full-year decline to 10 percent for 2020, according to ING Bank.

Moving forward, the PSEi may decline further as investors continue to feel jittery over the rising number of COVID-19 cases, with the tally now back to the 2,000 mark last seen back in October.