Market still down amid tighter restrictions

The local bourse extended its slump on Monday as the government tightened restrictions in some areas anew amid the rising coronavirus disease 2019 (Covid-19) cases in the country.

The benchmark Philippine Stock Exchange index (PSEi) declined by 0.64 percent or 40.93 points to 6,395.17, while the wider All Shares slipped by 0.56 percent or 21.70 points to close at 3,887.71.

Regina Capital Development Corp. Managing Director Luis Limlingan said the main index was in the negative territory as investors assessed the impact of the new restrictions implemented in some areas.

Presidential Spokesperson Harry Roque on Sunday said the National Capital Region would remain under general community quarantine, along with nearby provinces Bulacan, Cavite, Laguna and Rizal until April 4.

Roque also cited the implementation of new restrictions, along with only essential travel to be allowed in the said areas.

“Sentiment from overseas also spilled over as US equities slid down, breaking its two-week win streak, after treasury yields jumped,” Limlingan added.

The Dow Jones and S&P 500 lost 0.71 percent and 0.06 percent, respectively, while Nasdaq climbed 0.76 percent.

For his part, AAA Equities head of research Christopher Mangun said the general sentiment remained fearful, which could be seen in the rush of selling at the start of trading.

The market opened lower at 6,381.59 and fell to its intraday low of 6,325.64.

Mangun noted that prices recovered after the initial sell-off as some investors were more willing to buy shares at the lower prices.

“This may be due to the government’s commitment to the targeted lockdowns rather than
shutting the economy down as a whole,” he continued.

Mangun sees the panic selling to ensue should local Covid-19 cases continue to climb.

The services index was the sole survivor among local sectors with a gain of 0.75 percent, while mining and oil led the decliners at 2.82 percent.

Total volume turnover was at 2.48 billion shares valued at P6.29 billion.

Losers edged out winners, 172 to 53, while 33 securities were unchanged.