PSEi retreats for 3rd week as quarantine tightened measures

MANILA, Philippines — The main stock index immediately cut short its rally, ending lower for a third straight week, as the government decided to tighten quarantine measures anew to curb the rapid spread of the more infectious COVID Delta variant.

The 30-company Philippine Stock Exchange index (PSEi) closed at 6,520.74, down 55.88 points or 0.85 percent while the broader All Shares index slipped 36.43 points or 0.89 percent to finish at 4,038.51.

Total value turnover, however, reached a robust P8.901 billion. Market breadth was negative, 172 to 41, while 24 issues were unchanged.

“The local market fell by as much as 114 points, but losses were cut on market-on-close buying. The market plunged for the third straight week as the DOH reported local transmission of the Delta variant, which led President Duterte to put NCR and four other provinces under GCQ with heightened restrictions,” said AB Capital Securities in a commentary.

Net foreign selling persisted for the sixth straight week and accumulated to P1.1 billion this week, excluding block sales.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the upward trend in new COVID cases locally, in ASEAN and the rest of Asia as well as worldwide – aggravated by the spread of the more contagious Delta and Lambda variants –  are adding to the market jitters.

The negative mood spilled over to other Asian markets after a volatile week in which sentiment over global growth waxed and waned with every new headline on the Delta variant.

Surges in coronavirus cases around the region are prompting governments to tighten pandemic restrictions that are expected to slow business activity and keep travel to a minimum.