Stocks retreat on renewed virus worries

MANILA, Philippines — Stocks closed lower yesterday, bucking the uptrend in most Asian markets, as local investors await positive news on the coronavirus situation in the country, traders said.

The Philippine Stock Exchange index (PSEi) returned to negative territory yesterday, closing at 6,494.81, down 45.15 points or 0.69 percent. The broader All Shares index finished in the red as well, finishing 16.07 points or 0.40 percent lower to 3,981.51.

“The local market snapped its two day-win streak and closed in the red for the week,” said AB Capital Securities in a market commentary.

It said net foreign selling persisted for the ninth straight week.

In other regional markets, shares were mostly higher yesterday after strong US and Chinese economic data cemented expectations of a solid global recovery from the coronavirus-induced slump.

“Markets look ahead to economic normalization as vaccines will go around. Stock prices are likely to rise gradually while looking at upcoming earnings,” said Tomo Kinoshita, global market strategist at Invesco Asset Management in Tokyo.

Markets were propped up after China reported a record 18.3 percent growth in the first quarter, though the reading slightly undershot expectations, while retail sales bounced strongly last month.

The data did little to change the view that its brisk expansion is expected to moderate later this year as the government turns its attention to reining in financial risks in overheating parts of the economy.

“Asian markets will likely track gains overnight with optimism driven by positive US data highlighted by retail sales. Investors now turn their focus to a string of China data reports,” analysts said in a report.