Stocks snap win streak as unemployment soars

MANILA, Philippines — The stock market’s  seven-day winning streak came to a halt yesterday as the benchmark Philippine Stock Exchange index (PSEi) ended in negative territory following the release of record-high unemployment numbers brought about by the challenging environment caused by the coronavirus disease 2019 or COVID-19 pandemic.

The PSEi closed at 6,465.13, down 52.36 points or 0.80 percent while the broader All Shares index slipped 11.75 points or 0.31 percent to end at 3,773.28.

The sectoral gauges were a mixed bag, with the mining and oil and financials ending higher and the rest finishing in the red.

Total value turnover stood at P9.1 billion. Market breadth was positive with 118 gainers to 77 losers, while 43 issues were unchanged.

“The record-high unemployment rate of 17.7 percent triggered profit taking, sending the local market down by 52.36 points or 0.8 percent lower at 6,465.13. Volume and value turnover posted 946.67 million and P9.11 billion. Miners led gainers, surging 5.51 percent. Services lost the most by 1.97 percent. Advancers led decliners 118 to 77,” Philstocks Financials said.

The country’s unemployment rate surged to a record 17.7 percent in April, the Philippine Statistics Authority said.

Millions lost their jobs due to the outbreak COVID-19 as most companies closed shop or suspended operations due to the strict implementation of the enhanced community quarantine measure.

April’s unemployment rate means that 7.3 million people were without jobs compared to the 5.3 percent in January and 5.1 percent in April last year, the PSA data showed.