Index falls to 6,372, lowest in 2 months

The main stock gauge plunged to its lowest level in two months yesterday ahead of President Duterte’s last State of the Nation Address and amid a continued surge in COVID-19 Delta variant cases in the country.

The 30-company Philippine Stock Exchange index (PSEi) fell back to the 6,300 level, closing at 6,372.61 yesterday, down 148.13 points or 2.27 percent. This is the lowest mark for the PSEi since ending at 6,341.24 on May 26.

Likewise, the broader All Shares index slipped 73.36 points or 1.82 percent to finish at 3,965.15.

“The PSEi is back to the 6,300 level for the first time since May 26. The local market tumbled nearly 150 points as the Department of Health tagged new Delta variant cases, of which 12 were local cases,” AB Capital Securities said in a commentary.

Total value turnover was thin at P4.150 billion. Market breadth was overwhelmingly negative, 151 to 49, while 39 issues were unchanged.

“As noted last week, with market participants discounting the possibility of another round of tighter lockdowns due to the presence of Delta variant, the PSEi may remain pinned at its current ranges even as an oversold rally may be inspired by the recent recovery in global markets. Nonetheless, keep an eye on the upcoming second quarter earnings releases for potential selective plays,” COL Financial said in a report.

The Department of Health said on Sunday that there are now 55 additional cases of the more transmissible Delta variant of COVID-19. The country’s total number of Delta cases now stands at 119 as of pres time.