Rebound, Covid woes hit market
Philippine Stock Exchange index ended the day at 6,457.79, down 60.85 points or 0.93 percent after moving between 6431.71 and 6,520.03
Local stock exchange tumbled back to the 6,400 level as it weakened for the third straight day amid a looming fragile recovery.
The downtrend persisted as the government announced the possibility of stricter lockdown measures should the cases continue to rise and as the Covid-19 death toll breached 15,000 on Monday, Regina Capital Development Corp. managing director Luis Limlingan said.
US stock futures, on the other hand, were nearly unchanged as investors wait for the inflation results, he added.
Net foreign selling persisted for the eighth straight session with P1.4 billion with value turnover at P5.4 billion.
Philippine Stock Exchange index (PSEi) ended the day at 6,457.79, down 60.85 points or 0.93 percent after moving between 6431.71 and 6,520.03 on 109,579 shares exchanged valued at P5.447 billion.
Asia markets gain
Markets in Asia mostly rose as investors gear up for a much -anticipated earnings season and the release of key US inflation data later in the day.
After a recent run-up in equities that saw the S&P 500 and Dow end last week at record highs, traders are taking a breather as they await the next buying catalyst.
A forecast-busting reading on US producer price inflation last week gave markets a taste of what to expect over the next few months as the global economy emerges from last year’s crisis and vaccinations allow people to slowly return to their pre-pandemic habits.
The release of consumer price data is being closely followed. There are growing fears that reopening will send prices surging this year and force central banks to tighten the ultra-loose monetary policies — including rock-bottom interest rates — that have helped fire a year-long equity rally.
The Federal Reserve has repeatedly pledged not to change tack until inflation is elevated for some time and unemployment is under control.
Those worries have sent benchmark 10-year Treasury yields — a gauge of future borrowing costs — to one-year highs. The smooth sale of government bonds Monday soothed some concerns.
“It’s more of a wait-and-see, ahead of a week that promises no shortage of ‘rock-the-boat’ type inflation data,” Axi strategist Stephen Innes said.