Shares drop on concerns over new restrictions

PHILIPPINE SHARES declined on Wednesday on concerns over the implementation of new coronavirus disease 2019 (COVID-19) restrictions in Metro Manila.

The Philippine Stock Exchange index (PSEi) declined by 40.16 points or 0.58% to close at 6,880.20 on Wednesday, while the broader all shares index went down by 17.37 points or 0.40% to finish at 4,277.63.

“The local bourse extended its decline this Wednesday… as investors chose to remain cautious. The concern now is the uncertainties on the sustainability of the NCR’s (National Capital Region) upcoming social restriction setup and its further easing in the future as our COVID-19 cases remain elevated,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

Metro Manila will begin implementing targeted lockdowns via the new Alert Level System on Thursday, Sept. 16. The capital will be under Alert Level 4 amid a high infection reproduction number and as hospitals remain full.

“Trading remained strong with net value turnover posting… above the year-to-date average of P7.11 billion. This was lower compared to the preceding day,” he added.

Value turnover dropped to P7.55 billion with 1.51 billion shares switching hands on Wednesday, down from the P31.17 billion with 4.71 billion issues traded on Tuesday.

“Asian markets including the Philippines fell after Wall Street slipped on growth concerns. US stocks closed as the softer-than-expected inflation reading failed to assuage economic uncertainties and the increasing likelihood of a corporate tax hike,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a separate Viber message.

Wall Street lost ground on Tuesday as economic uncertainties and the increasing likelihood of a corporate tax rate hike dampened investor sentiment and prompted a broad sell-off despite signs of easing inflation, Reuters reported.

The Dow Jones Industrial Average fell 292.06 points or 0.84% to 34,577.57; the S&P 500 lost 25.68 points or 0.57% at 4,443.05; and the Nasdaq Composite dropped 67.82 points or 0.45% to 15,037.76.

US inflation dropped from a 13-year high on Tuesday but was still above the Federal Reserve’s two-percent target. Consumer prices rose by 5.3% in August compared with the 5.4% in June and July.

Back home, majority of sectoral indices declined on Wednesday except for holding firms, which gained 54.12 points or 0.78% to end at 6,973.58.

Meanwhile, property lost 66.89 points or 2.17% to 3,009.65; services shaved off 25.83 points or 1.39% to close at 1,827.30; industrials went down by 89.66 points or 0.88% to 10,096.79; financials shed 11.05 points or 0.77% to 1,423.70; and mining and oil declined by 17.54 points or 0.18% to 9,603.49.

Decliners outnumbered advancers, 128 versus 64, as 51 names closed unchanged.

Foreigners logged P73.03 million in net outflows on Wednesday from the P3.60 billion in net purchases seen the previous day. — K.C.G. Valmonte with Reuters

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