Stocks fall on likely quarantine extension

MANILA, Philippines — Stocks returned to the red yesterday on concerns the lockdown status in Metro Manila and adjoining provinces will be extended, further dealing a blow to the country’s economic recovery efforts.

“Local market tumbled as sentiment is negative ahead of the expected announcement (today) of new quarantine classification,” AB Capital Securities said in a market commentary.

The benchmark Philippine Stock Exchange index or PSEi ended at its intra-day low of 6,356.47, down 32.91 points or 0.51 percent.

Likewise, the broader All Shares index slipped 19.96 points or 0.50 percent to finish at 3,910.32.

Most of the other sectors closed in negative territory except for mining and oil which continue to gain ground as the nine-year ban on new mining projects was lifted.

Total value turnover was thin at P4.61 billion, below the year-to-date average of P8.68 billion. Market breadth, however, was negative, 119 to 83, while 51 issues were unchanged.

PhilStocks Financial analyst Japhet Tantiangco said the local bourse declined amid the growing calls to extend the modified enhanced community quarantine in the National Capital Region Plus.

“Extending the modified enhanced community quarantine in the NCR Plus beyond April 30, is seen to deepen the damage in our local economy which will be a setback to our recovery,” he said.

Furthermore, foreigners remained net sellers with net outflows amounting to P652.52 million. Net foreign selling is already on an 18-day streak averaging P797.25 million per day, Tantiangco noted.

In terms of specific issues, Universal Robina Corp, the listed snacks food giant of the Gokongwei Group led the index gainers, climbing 2.35 percent to P135.10.

On the other hand, Bloomberry Resorts Corp lost the most in the index, falling 3.59 percent to P6.17.