Stocks slump to lowest level for the year

MANILA, Philippines — The local stock market plummeted yesterday, snapping a three-day upswing to hit its lowest level for the year, as curfews and the possibility of stricter lockdowns started to negatively weigh on investor sentiment.

The benchmark Philippine Stock Exchange index (PSEi) slumped by 194.75 points or 2.93 percent to finish at 6,436.10.

Likewise, the broader All Shares index spiraled down to 3,909.41, losing 95.68 points or 2.38 percent.

Total value turnover reached P10.4 billion.  Market breadth was negative, 157 to 64, while 35 issues were unchanged.

“PSEi plummets to the 6,400 level, its lowest level this year, on possible stricter lockdown,” AB Capital Securities said in a market commentary.

It said late in the session, OCTA Research proposed to implement hard general community quarantine or soft modified enhanced community quarantine to curb the spike in COVID cases.

DA Market Securities, for its part, said the surge in US yields is weighing on emerging-market stocks and currencies, as investors assess the risk of quicker US inflation amid the Federal Reserve’s dovish stance.

Asian stock markets followed Wall Street lower yesterday after rising US bond yields dampened buying enthusiasm driven by the Federal Reserve’s promise of low interest rates.

A higher yield can make bonds more attractive, drawing money out of stocks, especially high-priced tech giants that powered last year’s market rebound.