PSEi Sinks To A 2-Month Low After Lockdown Announcement
As more cases of the highly contagious Delta variant continues to rise, the National Capital Region (NCR) will be back to Enhanced Community Quarantine (ECQ) from August 6 to 202 to avert another surge that could overwhelm hospitals. Unlike the previous implementation of the ECQ, this time the government granted businessmen’s request for ample time to prepare for the upcoming lockdown. On top of that, vaccinations will likewise continue.
The announcement of the ECQ in Metro Manila, in turn, caused the stock market to sink to its lowest level in over two months. Friday turned out to be a bloodbath at the local stock market exchange, with the main index plummeting 3.48% capping the week at 6,270.23. Meanwhile, the broader All-Shares index lost 2.65%.
All sectoral counters were in the red, led by property firms that lost 4.98%. This was followed by holding firms (-3.31%), financials (-2.99%), industrial (-2.32%), services (-1.80%) and mining and oil (-0.68%).
Equities analyst for Regina Capital, Beatrice Lopez, noted that the investors’ immediate concern on the impact of the ECQ in Metro Manila to the economy is what drove the market to its performance today. However, she t doesn’t expect the main index to crash to the levels seen in 2020, which was a historic low.
According to her, unlike last year where the country was in unexplored waters, this time, it’s no longer an unfamiliar scene. It’s possible that the index would not fall as much as it did from March to April 2020. Lopez added that 6,000 could be the key support level for now.
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