Philippine shares bleed over announcement of ECQ in NCR

Philippine closed in the red on Friday as investors got spooked by the two-week reimposition of the hardest lockdown in Metro Manila, which increased worry over the economy's recovery from the COVID-19 pandemic.

The bellwether PSEi shed 118.82 points or 1.83% to 6,377.71 at the closing bell. The broader All Shares lost 66.76 points or 1.65% to 3,975.27.

The bloodbath transpired across all indices, with the Holding Firms index recording the highest decline at 1.94% followed by Industrial index at 1.54%.

“The local bourse declined today following the government's decision to place the National Capital Region back to the Enhanced Community Quarantine from August 6 to 20,” Philstocks Financial senior equity analyst Japhet Tantiangco said.

“The move is seen to lead to significant economic losses since the ECQ will limit the productive capacity of the country's biggest contributor to GDP. Given this, investors decided to exit the market,” Tantiangco said.

National Economic and Development Authority (NEDA) chief Karl Kendrick Chua earlier said that the economy stood to lose P105 billion for each week that NCR is under ECQ, at the same time the number of poor people could increase to 177,000 and at least 444,000 will be jobless.

Trade Secretary Ramon Lopez, likewise, said another round of region-wide lockdown would cost P30 billion in lost wages and about 1.8 million workers in NCR could be affected.

More than 1.692 billions shares valued at P4.344 billion, changed hands. Decliners led advancers, 159 to 43, and 46 issues were unchanged. —NB, GMA News