Stocks drop as gov’t tightens restrictions anew

By Denise A. Valdez, Senior Reporter

PHILIPPINE SHARES declined on Monday as investors went on a selling spree following the sudden implementation of stricter quarantine measures in Metro Manila and other urban provinces.

The benchmark Philippine Stock Exchange index (PSEi) erased 212.53 points or 3.58% to close at 5,715.92, while the broader all shares index shaved off 101.81 points or 2.9% to end at 3,398.46.

“The index ended lower on the first day of trading this week, as the weekend turned out to be full of surprises, especially that the government eventually decided to place Mega Manila under stricter lockdown measures,” Timson Securities, Inc. Trader Darren T. Pangan said in a mobile phone message on Monday.

While the government decided last week to keep Metro Manila and most parts of the country under a relaxed lockdown until mid-August, things changed over the weekend when healthcare workers pleaded for stricter quarantine measures as a breather for the congested hospitals and clinics.

The number of local coronavirus disease 2019 (COVID-19) cases have breached the 100,000 mark, hitting 103,185 on Sunday, with most of the 5,032 new cases coming from Metro Manila, Cavite, Cebu, Laguna and Rizal.

President Rodrigo R. Duterte decided late Sunday to put several areas under a stricter lockdown for two weeks starting Tuesday. These include Metro Manila, Cavite, Laguna, Rizal and Bulacan.

Under the new quarantine rules for these areas, several sectors are again restricted from operating, such as real estate, construction and personal care establishments.

“The move caught most investors off guard as the government struggles to restart an ailing economy. The property index was hurt the most,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.

The property index lost 149.02 points or 5.11% to 2,764.01 at the end of session.

All other sub-sectors also ended in red territory: financials fell 42.57 points or 3.73% to 1,096.56; holding firms dropped 212.91 points or 3.46% to 5,938.47; services shed 30.25 points or 2.19% to 1,349.14; mining and oil declined 105.86 points or 1.92% to 5,383.91; and industrials contracted 122.27 points or 1.63% to 7,349.82.

Value turnover on Monday stood at P6.59 billion with 1.63 billion issues switching hands, up from the previous session’s P5.09 billion with 1.34 billion issues.

Decliners outnumbered advancers, 154 against 51, while 39 names ended unchanged.

Net foreign selling ballooned to P1.64 billion on  Monday from the P563.91 million seen in the last session.