Local stocks dip further on pandemic worries

Philippine shares closed the week in the red on Friday as worries over the lingering economic impact of the COVID-19 pandemic continue to weigh on investor sentiment.

The bellwether PSEi shed 37.46 points or 058% to 6,378.07 at the closing bell. The broader All Shares lost 20.22 points or 0.51% to 3,927.19.

“The market suffered more losses this week as more and more investors are closing positions on expectations that the economy will take longer to recover,” AAA Equities head of research Chris Mangun said.

“The spike in new COVID-19 cases locally and abroad, has caused tighter restrictions and fears of financial hardships. The slow pace of inoculation is another reason why investors are turning increasingly bearish,” he added.

Foreigners were net sellers at P1.311 billion on the back of P3.698 billion foreign selling and P2.387 billion foreign buying.

“Next week's events are going to be extremely important for the market as the government decides on what restrictions. We may see an extension of the current measures as the number of new cases have not shown any improvement,” Mangun said.

“Further tightening of mobility will be a disaster for the economy as well as the market,” he said.

The modified enhanced community quarantine (MECQ) in Metro Manila, Bulacan, Rizal, Cavite, and Laguna - collectively as NCR Plus - will expire on April 30, with the government expected to announce what will be the new quarantine classification thereafter.

More than 2.037 billion shares valued at P5.868 billion, changed hands. Decliners led advancers, 132 to 64, and 47 issues were unchanged.—AOL, GMA News