PSEi plunges on US Fed’s call for large-scale asset purchase, lockdown worries

Philippine shares closed in the red on Wednesday as foreigners pulled out funds following the US Federal Reserve’s call for a large-scale asset purchase and local investors’ reinforced worries that a stricter lockdown will be imposed.

The bellwether PSEi shed 156.30 points or 2.53% to 6,016.51. The broader All Shares lost 81.49 points or 2.25% to 3,544.36.

Across all indices, the Industrial index recorded the biggest lost by 229.33 points or 3.04%, followed by Holding Firms at -182.22 points or -2.81%.

Regina Capital Development head of sales Luis Limlingan said local shares were sold down as “investors fled to their countries of domicile” after Federal Reserve Governor Lael Brainard called for sustained large-scale asset purchase by the US central bank to help the economy rebound amid a “thick fog of uncertainty” brought on by COVID-19.

Foreigners were net sellers at P1.648 billion as foreign selling amounted to P4.102 billion against foreign buying of P2.454 billion.

“The PSEI collapsed today as investors believe stricter quarantine restrictions will be reimposed because of surging coronavirus cases,” AAA Equities head of research Chris Mangun said.

The ongoing community quarantine classifications are set to expire on Wednesday midnight. President Rodrigo Duterte will announce new quarantine classifications for July 16 onwards later in the day.

More than 2.664 billion shares valued at P7.286 billion, changed hands. Decliners led advancers, 166 to 48, and 32 issues were unchanged. — BM, GMA News