Stocks fall further on Delta variant worries

Published July 19, 2021, 5:29 PM

by James A. Loyola

The local stock market fell as investors continued selling after news of the presence of local cases of the COVID-19 Delta variant.

The main index dropped 106.63 points or 1.59 percent to close at 6,587.20 as the Property sector led in the retreat across the board.

Volume improved to 2.11 billion shares worth P6.54 billion as losers trounced gainers 159 to 43 with 48 unchanged.

“Philippine shares were sold again ahead of the holiday and as investors keep vigilant on the delta variant spreading globally and more key data set to be released,” said Regina Ca Development Corporation Managing Director Luis Limlingan.

He added that, “Investors in the west are tuned in to the release of the housing starts data on Tuesday and the Markit PMI by the end of the week.”

“Sentiment from last week also carried over as shares tumbled last Friday as strong retail sales data and earnings releases were overturned by inflation concerns,” said Limlingan.

Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “The local market extended its decline this Monday as Delta variant worries continued to weigh on sentiment.”

He noted that, the detection of local transmission of the said strain in the country is raising fears over a possible surge in COVID-19 cases, and reimposition of strict quarantine measures, which puts economic recovery at risk.