Wed. Jul 28th, 2021

MANILA – Both the local stocks and the peso ended Thursday down partly on news about the decline in US’ retail sale and factory production last March due to lockdown to contain coronavirus disease 2019 (Covid-19) cases.

After a three-day rally, the Philippine Stock Exchange index (PSEi) shed 7.07 percent, or 420.45 points, to 5,525.60 points.

This negative performance was mirrored by the other indices, with All Shares down by 5.11 percent, or 181.60 points, to 3,370.13 points.

Property posted the biggest drop among the sectoral gauges with 8.63 percent and was trailed by the Holding Firms, 6.59 percent; Services, 5.83 percent; Industrial, 5.35 percent; Financials, 4.88 percent; and Mining and Oil, 3.69 percent.

Volume totaled to 679.82 million shares amounting to PHP9.29 billion.

Losers led gainers at 153 to 50, while 38 shares were unchanged.

The negative sentiment in the local bourse Thursday was in line with its counterparts overseas partly on account of the drop of US retail sales last March, Regina Capital Managing Director Luis Limlingan said.

US retail sales declined by 8.7 percent in the third month this year due to the movement restrictions amid Covid-19 spread.

During the same month, US factory output contracted by 6.3 percent, the highest since 1946 or the end of World War II.

This time, the drop was caused by global pandemic because of Covid-19.

To date, Covid-19 cases globally have reached more than 2 million, with more than 137,000 deaths and more than 517,000 recoveries.

In the US alone, news reports said President Donald Trump had marathon calls with stakeholders regarding the re-opening of the economy.

In Europe, officials are considering the partial lifting of restrictions.

Meanwhile, the local currency ended the day at 50.8 to a US dollar, weaker than its 50.62 close Wednesday.

It opened the day sideways at 50.73 from 50.65 a day ago.

It strengthened to 50.65 mid-trade but also dipped to 50.8, resulting in an average of 50.713.

Volume totaled to USD352.1 million, higher than the USD248.6 million in the previous session. (PNA)

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