Share prices ended lower Thursday amid risk aversion as investors traded with caution after the spike on fresh new cases of the new coronavirus disease 2019 (COVID-19).
The Philippine Stock Exchange index was down 92.92 points to 6,192.58, a 1.48 percent drop.
The broader all shares index was down 38.23 points to 3,645.52, a 1.04 percent drop.
Losers edged gainers 104 to 87 with 39 stocks unchanged. Trading turnover reached 5.09 billion.
The peso closed at 49.41 to the dollar, up from 49.47 on Wednesday.
It opened at 49.455 and hit a high of 49.39 and a low of 49.50. Trading turnover reached $641.7 million.
Reuters reported the rally in Shanghai’s main index, which tends to set the tone for a number of other markets in the region, was spurred by the large volumes of extra cash being pumped through the financial system and reflects hopes the global economy can recover quickly later this year.
But virus flare-ups in a number of countries continue to sour that picture, with the Philippines one nation where the government has warned it may tighten its lockdown.
“We have two competing narratives, where the reopening optimism suggests buy but the fear of second-wave spreaders suggests tempering one’s enthusiasm,” Stephen Innes, the chief global market strategist of AxiTrader said.
With another 2,500-plus infections announced late on Wednesday, a fifth of the Philippines’ total infections have been confirmed in the past five days.
With the US dollar nursing losses, most currencies in the region were flat to slightly higher. China’s yuan climbed to its strongest level since mid-March.
Fiscal stimulus, heavy government borrowing driving up bond yields and a state-media editorial talking up China’s strong fundamentals have supported the recent rise.
Local stockbroker SB Equities Inc., said the market with President Duterte said to be also leaning towards extending current quarantine measures in a bid slow the rate of current infections, the PCOMP traded in the red all session on muted turnover, finishing on its day low.
Most actively traded SM Investments Corp. was down P30.50 to P945. PLDT Inc. was up P12 to P1,360. Ayala Land Inc. was down P0.95 to P32.95. BDO Unibank Inc. was up P0.50 to P96.10. SM Prime Holdings Inc. was down P1.25 to P30.50. Pure Gold Priceclub Inc. was up P0.30 to P46.90. International Container Terminal Services Inc. was down P0.55 to P99.45. Ayala Corp. was up P14 to P762. JG Summit Holdings Inc. was up P1.50 to P68. Universal Robina Corp. was down P0.10 to P124.
