MANILA – Concerns about the continued rise in coronavirus disease 2019 (Covid-19) infections due to the Delta variant partly affected the Philippine Stock Exchange index (PSEi) and the peso on Friday.
The main equities gauge ended the week at 6,320.19 points, down 3.61 percent or 236.38 points.
All Shares slipped by 2.04 percent, or 82.99 points, to 3,976.94 points.
Most of the sectoral indices also went down during the day – the Holding Firms index by 5.21 percent; Property, 3.88 percent; Services, 2.54 percent; Mining and Oil, 1.86 percent; and Industrial, 1.12 percent.
Only the Financials index ended in positive territory after moving sideways by 0.02 percent.
Volume reached 1.93 billion shares amounting to PHP14.36 billion.
Losers led gainers at 134 to 63, while 45 shares were unchanged.
Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort traced the risk-off sentiments both in the local bourse and the foreign currency markets to concerns over the possibility of an extension of the two-week enhanced community quarantine (ECQ) in the National Capital Region beyond August 20, given that daily cases have risen to more than 12,000 lately.
Ricafort said the number of cases is near the record-high 15,298 on April 2, 2021.
He said the arrival of more vaccines against Covid-19 and the inoculation of more individuals are expected to counter the impact of the pandemic on the economy.
These will allow for the easing of the movement restrictions, further re-opening of the economy, and improvement of recovery prospects and investment valuations, he added.
Ricafort forecast the main index’s next support level to be between 6,100 and 6,200.
Meanwhile, the local currency ended the trade at 50.481 to the dollar, weaker than its 50.39 close on Thursday.
It opened the day at 50.43 and traded between 50.49 and 50.37, averaging at 50.418.
Volume totaled USD641.17 million, lower than the USD723.3 million in the previous session.
Ricafort said the peso’s immediate support level is between 50.00 and 50.20. (PNA)
