Stock market declines again; URC, Jollibee dip drop

The stock market declined again Thursday on concerns the capital region could go back to stricter quarantine rules amid rising COVID-19 cases.

The Philippine Stock Exchange Index fell 35.25 points, or 0.6 percent, to 6,029.01 on a value turnover of P4.3 billion. Loser overwhelmed gainers, 150 to 50, with 36 issues unchanged.

Palace spokesperson Harry Roque said the return to a modified enhanced community quarantine from the current general community quarantine in Metro Manila and other areas was possible if the number of COVID-19 cases in the country reached 85,000 by the end of July, as projected by experts from the University of the Philippines.

Metro Pacific Investments Corp., which is into toll roads, water and electricity distribution, hospitals and infrastructure, dropped 3.6 percent to P3.19, while Jollibee Foods Corp., the biggest fast-food chain, shed 2.6 percent to P126.60.

Universal Robina Corp., the largest snack food maker, dipped 2.1 percent to P119.70, but Philex Mining Corp., a unit of Metro Pacific, climbed 3.5 percent to P2.99.

The rest of Asian stocks were mixed Thursday as investors juggled hopes for a new stimulus deal in Washington with coronavirus concerns and another flare-up between China and the United States.

Hong Kong rose 0.8 percent, Sydney gained 0.3 percent, and Singapore climbed 0.9 percent, while Mumbai and Jakarta put on 0.6 percent.

But Shanghai fell 0.2 percent, though well off its earlier lows of more than one percent, while Seoul, Taipei and Wellington were also down.

Optimism over the development of a vaccine and a wall of government and central bank cash is providing much-needed support to equities as traders fret over a spike in new infections around the world and the reimposition of containment measures in key economies.

European leaders lifted sentiment this week when they finally agreed on an $860-billion rescue package for the eurozone, putting the focus on US lawmakers, with their earlier multi-trillion-dollar program”•which gives cash to households”•about to wind down.

Republicans have been struggling to come up with a bill to counter a $3.5-trillion Democrat proposal, fanning concerns they will not come up with anything ahead of an August break.

However, reports said Mitch McConnell would soon unveil a $1-trillion plan after overcoming some differences with the White House. 

Analysts said that while it may take some time, a package is expected to be ready for Donald Trump to sign off, with no one wanting to be seen to deny money to the poorest ahead of a general election.

Indications a deal could be done helped Wall Street into positive territory, with dealers also cheered by an announcement from German firm BioNTech and Pfizer that the government had agreed to pay almost $2 billion for 100 million doses of a potential vaccine if regulatory approval is granted.

Washington and Beijing added to the long list of issues they have butted heads over when the US ordered the closure of the Chinese consulate in Houston within 72 hours.

That came a day after two Chinese nationals were indicted for allegedly hacking hundreds of companies worldwide seeking to steal vaccine research. With AFP