Philippine Stock Exchange index

SHARES closed the week lower after the government extended lockdown restrictions in Metro Manila and as market sentiment was clouded by expectations of faster September inflation.

The bellwether Philippine Stock Exchange index (PSEi) shed 29.28 points or 0.42% on Friday to close at 6,923.60, while the all shares index inched up by 0.67 point or 0.01% to 4,326.51.

“Investors may have chosen to stay on the sidelines while observing the government’s implemented restrictions in the capital region,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a Viber message. “7,000 remains the nearest resistance area, while 6,780 seems to be the immediate support level.”

Metro Manila will remain under Alert Level 4 until Oct. 15, the government announced Thursday evening, to extend the pilot implementation of the targeted lockdown system.

“The market’s sideways movement ended in the red territory due to the negative spillovers from Wall Street,” Philstocks Financial, Inc. Senior Research and Engagement Supervisor Japhet Louis O. Tantiangco said in another Viber message.

“The market today was also weighed by expectations of a higher inflation print for September compared to the preceding month,” he added.

“Offsetting positive factors include the stronger Philippine Manufacturing PMI (purchasing managers’ index) data back to expansion mode at six-month highs and also among the highest since February 2020 or shortly before the pandemic, as well as the scheduled start of the pilot vaccination of minors 12-17 years old on Oct. 15,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a separate Viber message.

On Friday, IHS Markit reported the country’s factory output went up to 50.9 in September, climbing from its 46.4 reading the previous month.

Meanwhile, the country will also start vaccinating the general population beginning this month, including those aged 12 to 17. Parents are encouraged to register their children to get vaccinated against COVID-19.

Most sectoral indices closed the week in the green except for property, which lost 34.33 points or 1.13% to finish at 2,989.88, and holding firms, which declined by 68.77 points or 0.98% to 6,894.28.

Meanwhile, mining and oil gained 115.65 points or 1.24% to end at 9,397.55; services went up 13.62 points or 0.7% to 1,949; financials gained 7.06 points or 0.56% to 1,412.45; and industrials rose 44.34 points or 0.43% to close at 10,300.34.

Value turnover surged to P21.99 billion with 2.32 billion shares traded on Friday, more than twice the P9.88 billion with 1.54 billion issues that switched hands the previous day.

Advancers outnumbered decliners, 103 versus 86, while 53 names closed unchanged.

Foreigners turned buyers with P2.84 billion logged in net purchases on Friday, a turnaround from the P346.7 million recorded in net outflows on Thursday. Mr. Ricafort said this was an effect of MREIT, Inc.’s listing at the exchange. — Keren Concepcion G. Valmonte