Stocks weaken anew on tighter quarantine measures
The local stock market gave up some of the previous day’s gains to end lower week-on-week after government reimposed stricter quarantine measures after reporting the local transmission of the Delta variant.
The main index ended 55.88 points or 0.85 percent lower to close at 6,520.74, after recovering some losses late in the session, with only the Services counter holding its ground while the Property sector led the retreat.
Volume rose to 2.22 billion shares worth P8.9 billion as losers outnumbered gainers more than 4-to-1 at 172 to 41 with only 24 unchanged.
“Philippine shares were sold once more as investors stayed on the sidelines to see how the delta variant would spread and what would be the government’s response to this,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
In the morning, the Health Department confirmed the local transmission of the highly infectious coronavirus Delta variant including in Metro Manila.
The government will ban travelers coming from Malaysia and Thailand, as well as tighten restrictions across the National Capital Region.
Philstocks Financial Research and Engagement Officer Claire Alviar said “The local bourse declined as the government tightens once again the restriction in Metro Manila and other provinces due to the Delta Variant Threat. “
She noted that, “The stricter quarantine measures would be detrimental to the economic health of the country particularly that we are still recovering, with consumer and business confidence remaining weak.”
Alviar added that, “The market actually has been saved below 6,500, by the last-minute bargain hunters but it still failed to close in the green. We think that many investors now are staying on the sidelines monitoring the Covid-19 cases and the action of the government against the spread of the Covid-19, especially the Delta Variant.”