The local stock market ended the week in a low note, giving way to corrective pressures on concern over the threat posed by the COVID -19 Delta variant to the global economy.
The main index fell 90.07 points or 1.30 percent to close at 6,834.92 after trading much lower intraday. Holding Firms suffered the biggest loss as all sub-indices dropped across the board.
Volume rose to 1.77 billion shares worth P8.42 billion as losers swept gainers 153 to 59 with 43 unchanged.
“Philippine shares continued to fall as fresh COVID-19 cases are being logged in some countries...The resurgence of COVID-19 cases, including the Delta variant, also prompted the Olympics organizers to ban all spectators from the games.”
He noted that, “Japan would be placed under a state of emergency until August 22. This stoked investor concerns that global economic recovery would be stalled.“
Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “The local bourse plunged as COVID-19 worries took over sentiment. This comes as our neighboring peers, Japan and South Korea impose measures on their respective capitals due to the rise of COVID-19 cases.”
He added that, “Today’s decline may also be reflective of concerns over the effectiveness of the COVID-19 vaccines against the Delta variant.
“Finally, the negative spillovers from Wall Street weighed on today’s trading,” Tantiangco said.