Shares drop as gov’t continues to limit mobility

STOCKS dropped further on Monday as parts of the country remained under strict mobility restrictions due to higher coronavirus disease 2019 (COVID-19) cases.

The 30-member Philippine Stocks Exchange index (PSEi) declined by 37.51 points or 0.51% to close at 7,223.83 on Monday, while the broader all shares index dropped 10.06 points or 0.26% to end at 3,845.24.

“The market closed lower due to record-high virus cases and reduced mobility with the implementation of ‘no vaccinations, no public utility vehicle ride,’ creating expectations of slower growth,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message.

Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said expectations of mounting economic losses due to the extension of the Alert Level 3 — the second strictest classification — in the National Capital Region (NCR) and other key economic areas weighed on the market.

President Rodrigo R. Duterte last week extended the implementation of stricter restrictions in NCR and other areas until the end of the month due to rising COVID-19 cases in the country.

Economic managers earlier said the country would incur a P3-billion productivity loss each week that Metro Manila and its neighboring provinces are under Alert Level 3.

Mr. Tantiangco also noted that trading was “anemic” as value turnover slid to P5.78 billion with 1.13 million issues traded, from the P5.80 billion recorded on Friday with 947.07 million shares switching hands.

“The local bourse finished lower together with markets in the region, as investors may be staying cautious ahead of the earnings season in the US and at home in an attempt to get a clearer view of how the economy performed over the past few months,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a Viber message.

Asian share markets were choppy on Monday as a slew of Chinese economic data confirmed the deadening effect of coronavirus restrictions on consumer spending, prompting Beijing to again ease monetary policy, Reuters reported.

MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.2%, while Japan’s Nikkei bounced 0.8% after losing 1.2% last week.

Back home, sectoral indices were mixed. Mining and oil jumped 231.74 points or 2.29% to close at 10,318.83, and services went up 6.03 points or 0.30% to 1,982.51.

On the other hand, financials slid 13.33 points or 0.80% to 1,649.15; property lost 23.95 points or 0.74% to end at 3,193.15; industrials retreated 56.78 points or 0.54% to 10,324.12; and holding firms declined 21.99 points or 0.31% to 7,041.04.

Decliners beat advancers, 104 against 78, while 61 names closed unchanged. Net foreign selling increased to P232.39 million from the P63.19 million logged the previous trading day.

Mr. Pangan put the PSEi’s support at the 7,000 level, while the closest resistance is at 7,450 area. — M.C. Lucenio with Reuters