Stocks weaken further after late night address by Duterte
Philippine stocks weakened further after the President’s late night address failed to assure investors that the pandemic is being managed.
The PSEi dropped 60.85 points or 0.93 percent to close at 6,457.79 with only the Services counter managing to eke out a gain.
Volume improved slightly to 1.93 billion shares worth P6.1 billion as losers beat gainers 134 to 64 with 50 steady.
“The local bourse's downtrend persisted, settling below the key 6,500 level. This, as the government announced the possibility of stricter lockdown measures should the cases continue to rise, and as the COVID-19 death toll breached 15,000 yesterday,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
Philstocks Financial Senior Analyst Japhet Tantiangco said “The local bourse extended its decline as our COVID-19 situation continued to weigh on investor confidence. This comes as our daily additional Coronavirus cases remain elevated, in turn, clouding our economic outlook.”
He added that, “The exit of foreign funds also contributed to Tuesday’s decline with net outflows amounting to P1.42 billion. Net foreign selling is already on an 8-day streak averaging P846.49 million per day.”
Tantiangco noted that, “Trading is still lethargic with net value turnover below the year-to-date average of P9.24 billion. This shows that many are still staying out of the market amid lingering uncertainties.”
AAA Equities Head of Research Chris said “The PSEi ended just a few points away from its 6,440 support level as selling pressure picked up. The lack of positive catalysts has kept the sentiment subdued.“
He said “Business restrictions are less restrictive under current MECQ guidelines, however, the constant rise of cases continue to spook investors.”