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Analyst: PH stock market still not out of the woods amid lockdown, rising COVID-19 cases - CNN Philippines

Published Aug 6, 2021 11:39:37 PM

Metro Manila (CNN Philippines, August 6) — Ending in red on Friday, the Philippine stock market is seen to remain weak in the coming days amid concerns on the newly implemented lockdown and spiking COVID-19 cases, according to an analyst.

Speaking to CNN Philippines' The Final Word, AP Securities broker Miko Sayo said local shares have been trading in a sideways to downward bias.

While there were gains in the past days, these might not have a great impact on the local market, he added.

"We did a rally in the last couple of days, but I am not so sure that we are out of the woods already. I think we might retest the lows, especially given that all these bad news of the lockdown and increasing COVID cases which are spooking investors," Sayo explained.

"I think the market will still be a bit weak in the short term," he added.

On Friday, Philippine shares ended on a weak note after the first day of the implementation of the strictest enhanced community quarantine (ECQ) in areas with rising COVID-19 cases, including the National Capital Region.

Latest government data showed total COVID-19 infections in the country have reached 1,638,345, with the addition of 10,623 new cases.

Active cases of people currently sick are now at a three-month-high of 74,297, following the April 26 record of over 74,600.

The implementation of a hard lockdown also aims to control the spread of the feared Delta variant, with the Department of Health now reporting 450 cases across the country.

READ: PH reports 119 new Delta variant cases

The 30-member Philippine Stock Exchange index marked its second day of losses, falling by 0.11% to close at 6,539.91, while the all shares index gained 0.32% to close at 4,055.42.

Most sectoral indices also ended in red territory led by mining and oil (down 0.69% to 9,719.25), followed by property (down 0.64% to 2,977.82), industrial (0.10% to 9,295.94), and holding firms (0.06% to 6,537.37).

Gainers were the services index (up by 2.13% to 1,639.98) and financials (up 0.01% to 1,431.78).

The first foreign selling was recorded in five days, with outflows being logged at ₱167.24 million, a reversal of Thursday's purchases at ₱237.61 million.

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