Stocks sink on rising cases, losses from tighter restrictions
STOCKS declined further on Friday due to the continued surge in infections after economic managers said the country will lose about P3 billion a week due to stricter mobility restrictions.
The bellwether Philippine Stocks Exchange index (PSEi) dropped 74.41 points or 1.05% to 7,011.11 on Friday, while the broader all shares index fell 31.97 points or 0.84% to 3,745.61.
“Market is pricing the estimated cost of P3 billion in weekly losses in terms of gross value added,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message.
“Sentiment was dented by the surge in infections with the placing of more areas in the country under Alert Level 3 status,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
Economic managers said in a statement on Friday that the country is projected to lose P3 billion a week due to the imposition of Alert Level 3 in Metro Manila and nearby areas.
President Rodrigo R. Duterte on Thursday night placed five provinces and nine cities under Alert Level 3 starting Jan. 9 in addition to Metro Manila, Rizal, Bulacan, Laguna, and Cavite as part of efforts to curb the rapid spread of coronavirus disease 2019 (COVID-19).
The Health department reported 21,819 new COVID-19 cases on Friday.
Mr. Tantiangco added that Friday trading was lethargic, with the value turnover below last year’s daily average of P7.38 billion.
Value turnover inched up to P5.85 billion with 647.43 million issued traded on Friday, from the P5.21 billion with 771.81 million shares that switched hands the previous day.
All sectoral indices closed lower on Friday. Property decreased 54.84 points or 1.75% to 3,068.75; mining and oil plunged 164.88 points or 1.7% to 9,524.90; industrials went down by 108.86 points or 1.06% to 10,110.81; holding firms fell 65.21 points or 0.94% to 6,845.80; services lost 14.02 points or 0.71% to 1,941.77; and financials slipped 6.46 points or 0.40% to 1,582.14.
Decliners outnumbered advancers, 136 versus 51, while 46 names closed unchanged.
Net foreign selling increased to P284.75 million on Friday from the P103.55 million recorded on Thursday. — MCL
