LOCAL SHARES closed the trading week in red territory as investors were cautious due to the extension of the enhanced community quarantine (ECQ) in Metro Manila and select regions.

The 30-member Philippine Stock Exchange index (PSEi) gave up 134.57 points or 2.4% to 5,464.98 on Friday. The broader all shares index also lost 58.08 points or 1.7% to 3,350.73.

“The local market declined as investors expect deeper economic losses following the extension of the ECQ in most parts of Luzon, including our economy’s top 3 regional contributors namely the National Capital Region, IV-A Calabarzon, and Central Luzon,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a text message.

In a televised speech Friday morning, Presidential Spokesperson Harry L. Roque said the government is extending the ECQ until May 15 for Metro Manila, Central Luzon, Calabarzon (Region IV-A — Cavite, Laguna, Batangas, Rizal, and Quezon) and other provinces covering the whole country.

Specifically, the other areas are Bataan, Bulacan, Nueva Ecija, Tarlac, Zambales, Pampanga, Batangas, Oriental Mindoro, Occidental Mindoro, Albay, Catanduanes, Benguet and Pangasinan for Luzon; Antique, Iloilo, Aklan, Capiz, Cebu province and Cebu City for Visayas; and Davao del Norte, Davao City and Davao de Oro for Mindanao.

Other locations tagged as low and moderate risk may be downgraded to a general community quarantine after April 30.

The two-week extension of the ECQ — making the set lockdown run a total of two months for these areas — spooked investors.

“From 2014 to 2018, these regions (National Capital Region, Calabarzon and Central Luzon) have been contributing an average of 36.4%, 17.0%, and 9.5% of the Philippine economy,” Mr. Tantiangco said.

“The optimism we saw in the four weeks prior to this one is waning as economic burdens become heavier due to the quarantine period extensions, and ultimately due to the coronavirus,” he added.

Aside from the extended ECQ, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said investors also took note of reports that the antiviral drug being developed by United States-based Gilead Sciences, Inc. to fight the coronavirus disease 2019 (COVID-19) has flopped.

“Shares ended lower…amid reports globally that suggested that a closely followed experimental drug intended to be used to treat coronavirus delivered disappointing results in an ‘inconclusive’ trial,” Mr. Limlingan said in a mobile message.

Five of six sectoral indices closed lower at the end of trading. Property dropped 124.13 points or 4.37% to 2,715.46; holding firms shed 180.14 points or 3.25% to 5,361.78; industrials shaved off 57.59 points or 0.79% to 7,209.48; financials cut 6.44 points or 0.53% to 1,188.69; and mining and oil slid 16.99 points or 0.36% to 4,592.45.

The only sector that gained was services, which added 2.26 points or 0.17% to 1,300.57.

Value turnover improved to P5.24 billion on Friday from P4.37 billion on Thursday. Total volume also increased to 829.26 million from 697.1 million issues.

Decliners beat advancers, 105 against 76, while 48 names ended unchanged.

Net foreign selling swelled to P1.02 billion from P440.43 million the previous session.

“Foreign transactions are already on a 28-day net selling streak averaging P907 million worth of outflows per day,” Philstocks Financial’s Mr. Tantiangco noted. — Denise A. Valdez

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