STOCKS closed in the red on Monday as investors waited for the final guidelines for the government’s plan to implement localized coronavirus disease 2019 (COVID-19) lockdowns in the capital.
The Philippine Stock Exchange index (PSEi) went down by 2.37 points or 0.03% to close at 6,968.14 on Monday, while the all shares index inched up by 2.07 points or 0.04% to end at 4,304.86.
“Local market moved sideways as it awaits how effective the government will contain the… virus going forward,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message.
First Metro Investment Corp. Head of Research Cristina S. Ulang said the market struggled to reach 7,000 due to cautiousness over the government’s plans.
“The question specifically is whether the shift to granular lockdown on uniform alert system of say 3 and 4 will enable ‘safe’ and ‘greater’ reopening of the economy,” Ms. Ulang said in a Viber message.
“For the most part of the day, the local bourse was in the negative territory as investors took a cautious stance while waiting for the final decision on the National Capital Region’s social restriction measures starting Sept. 16,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a separate Viber message.
Metro Manila is under the modified enhanced community quarantine until Sept. 15 and will shift to granular lockdowns beginning Sept. 16 until the end of the month.
The region will be under either an enhanced community quarantine or a general community quarantine, while areas will have specific alert levels depending on their exposure to COVID-19 cases. The government’s pandemic task force was expected to finalize guidelines for the pilot implementation of targeted lockdowns on Monday.
Philstocks Financial’s Mr. Tantiangco added that trading was “lethargic,” moving below the year-to-date average of P7.11 billion.
“This shows that many investors are staying out of the market due to the lingering uncertainties on the future of our social restriction measures, and on the overall COVID-19 and economic situation of the country,” he said.
Value turnover on Monday inched up to P5 billion with 1.75 billion shares switching hands from the P4.88 billion with 864.83 million issues traded on Friday.
Majority of sectoral indices started the week in the red except for services, which gained 28.35 points or 1.55% to finish at 1,848.21.
Meanwhile, property dipped 22.49 points or 0.72% to 3,085.50; mining and oil shaved off 49.55 points or 0.5% to 9,756.39; holding firms went down by 26.04 points or 0.37% to close at 7,014.02; financials inched down by 5.18 points or 0.35% to 1,442.48; and industrials lost 14.94 points or 0.14% to end at 10,208.37.
Decliners beat advancers, 119 against 76, while 49 names closed unchanged.
Net foreign selling surged to P164.38 million on Monday from the P53.32 million seen in the previous trading day. — K.C.G. Valmonte