Philippine shares down on ECQ extension worries

Share prices on the Philippine Stock Exchange closed in the red on Wednesday as worries over the possible extension of strict lockdown in Metro Manila and its nearby provinces compelled investors to off-load positions ahead of the long Holy Week break.

The bellwether PSEi shed 102.46 points or 1.57% to 6,443.09 at the closing bell. The broader All Shares lost 41.57 points or 1.05% to 3,924.29.

“The uncertainty on the extension of the tighter restrictions is the biggest concern of investors due to its devastating effect on the economy's recovery,” AAA Equities head of research Chris Mangun said.

“Hopes of a strong economic recovery this year continue to fade as the health crisis gets worse. The government has maintained its stance that it will only extend the tighter restrictions as a last-case scenario. We will find out before the beginning of the next trading week,” he said.

Metro Manila and the four adjacent provinces - Bulacan, Cavite, Rizal, and Laguna - have been placed again under ECQ from March 29 to April 4, 2021 to contain the surge in COVID-19 cases.

Presidential spokesperson Harry Roque said extending the enhanced community quarantine in NCR and nearby provinces would be the government’s last resort in addressing the surge in COVID-19 cases.

Roque said the Inter-Agency Task Force would be meeting on Saturday, April 3, to decide whether the ECQ will be extended or not.

“The PSEi ended lower as selling pressure picked up which is the norm for the last trading day of the week,” Mangun said.

Financial markets are closed on Maundy Thursday and Good Friday, both are regular holidays.

More than 2.035 billion shares valued at P6.5 billion, changed hands. Decliners led advancers, 113 to 97, and 50 issues were unchanged.—LDF, GMA News