Local stocks weakened Tuesday, (April 27) amid indication that current lockdown measures will not be eased at the end of the month as COVID cases remain high.
The Philippine Stock Exchange index (PSEi) dropped 32.92 points or 0.52 percent to close at 6,356.47 with only the Mining and Oil counter advancing.
Volume declined further to 1.88 billion shares worth P4.61 billion as losers beat gainers 119 to 83 with 51 steady.
“The local bourse declined amid the growing calls to extend the Modified Enhanced Community Quarantine in the National Capital Region Plus,” said Philstocks Financial Senior Analyst Japhet Tantiangco.
He added that, “Extending the MECQ in the NCR plus beyond April 30, 2021 is seen to deepen the damages in our local economy which will be a setback to our recovery.”
AAA Equities Head of Research Chris Mangun said “The PSEi slid lower on declining trading volumes and a lack of buying at current prices.”
He noted that, “Selling pressure did not pick up significantly which is why losses are minimal, but the lack of interest from buyers due to the uncertainty on the economy’s recovery, is the reason why prices keep going lower.”
Mangun said that, whilw new daily COVID-19 cases have been on a steady decline, it was not significant enough to improve the investor sentiment and fears of tighter restrictions for the coming weeks remain which may urge more selling in the coming sessions.
Regina Capital Development Corporation Managing Director Luis Limlingan said “Philippine shares ended on a weak note as attention focused on corporate earnings both at home and the US.”
“After BPI, Meralco was the next index heavyweight to report first quarter results which are being analyzed by investors to give a snapshot to the health of the local economy,” he said.