Virus curbs: A file picture showing a woman receiving a vaccine against Covid-19 in Manila.
A spike in virus cases since mid-March spurred the Philippine
government to reimpose lockdowns. AFP
MANILA: A rout that’s made the Philippine benchmark equity gauge the worst performer in the Asia-Pacific region risks worsening in the wake of fresh virus curbs.
The Philippine Stock Exchange Index has tumbled 7.7% so far in 2021. While a two-day bounce has lifted the gauge above a critical 200-day support line, surging Covid-19 infections and fears of a lengthy lockdown in Manila have prompted investors such as Gerard Abad to hoard cash as they brace for further turbulence.
Published April 8, 2021, 6:00 AM
A rout that’s made the Philippine benchmark equity gauge the worst performer in the Asia Pacific region risks worsening in the wake of fresh virus curbs.
The Philippine Stock Exchange Index has tumbled 7.7% so far in 2021. While a two-day bounce has lifted the gauge above a critical 200-day support line, surging COVID-19 infections and fears of a lengthy lockdown in Manila have prompted investors such as Gerard Abad to hoard cash as they brace for further turbulence.
“There is more downside risk at this point in time,” said Abad, chief investment officer at AB Capital & Investment Corp. His cash holdings have doubled since the start of the year as he expects the stock gauge to retreat to as low as 6,000 if the virus curbs fail. The measure ended Tuesday’s session at 6,590.11.
Philippine financial markets closed for Holy Week break
Published April 1, 2021 10:34am The Philippines financial markets are closed on Thursday and Friday, April 1 and 2, in observance of the Holy Week holidays. Trading on the Philippine Stock Exchange and spot transaction at the Bankers’ Association of the Philippines will resume on Monday, April 5, 2021. The benchmark PSE index closed at 6,443.09 on Wednesday, lower by 102.46 points or 1.57% as worries over the possible extension of the enhanced community quarantine in Metro Manila and its nearby provinces compelled investors to off-load positions ahead of the long Holy Week break. The Philippine peso, meanwhile, ended stronger against the US dollar by 1.5 centavos to P48.53:$1 from Tuesday’s finish at 48.545.
Philippine shares managed to end the trading session in the green on Tuesday, thanks to market players’ hunt for cheaper stocks which have been battered by selling pressure in the past days due to the rising COVID-19 cases.
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