The local market continued to plunge with the entry of the Delta variant which is making the government consider the reimposition of more stringent quarantine measures.
The PSEi fell 110.99 points or 1.68 percent to close at 6,476.21 with the Financials and Industrial counters leading the bloodbath this time.
Volume remained low at 1.6 billion shares worth P5.9 billion as losers swamped gainers 167 to 45 with 41 unchanged.
“Philippine shares continued to be sold down with many issues already hitting or approaching oversold levels triggered by the spread of the Delta variant,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “Meanwhile, the US housing market is signaling some supply issues near-term as building permits sink to an eight-month low. It is driven by costly building materials and shortages of labor and land. The report from the Commerce Department also suggests that the elevated prices of houses and bidding wars could persist for a while.“
Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “The local market extended its decline to a 4th straight day as worries over the Delta variant and the risk it poses on the economy sustained the pessimism.”
He added that, “The increase in the daily COVID-19 case counts in the National Capital Region as per the OCTA Research Group also weighed on sentiment. This comes as the increase raises the risk of the NCR being placed in tight quarantine measures again.”
“Take note that the said region is the biggest contributor to our local economy accounting for 32.1 percent of the total on average in the last 5 years.”