Share prices rose slightly Monday in cautious trading, with investors keeping a nervous eye on a spike in virus infections in the local front and around the world.
The Philippine Stock Exchange Index added 32.36 points, or 0.5 percent, to 6,347.43 on a value turnover of P7.3 billion. Losers, however, beat gainers, 113 to 87, with 47 issues unchanged.
Newly-listed MerryMart Consumer Corp., the fast-rising supermarket chain owned by businessman Edgar Sia II, surged 22 percent to P3.60, while SM Prime Holdings Inc. of the Sy Group, advanced 2.4 percent to P32.20.
Universal Robina Corp. of the Gokongwei Group, the biggest snack food maker, climbed 2.3 percent to P132.50, while DMCI Holdings Inc. of the Consunji Group, increased 2.1 percent to P4.33.
The rest of Asian markets mostly fell Monday, while Europe pressed ahead with the easing of lockdown measures.
A wall of cash from governments and central banks around the world also continues to provide much-needed support, though observers say an equities rally from their March trough may have been overcooked.
But after enjoying a broadly positive week, traders turned cautious on news of a worrying jump in fresh cases in several US states including California, Texas and Florida, while China, Australia, Germany and Japan are also battling new outbreaks.
That comes after the World Health Organization last week warned of a “new and dangerous phase” of the pandemic, with people tiring of lockdowns despite the disease’s accelerating spread.
Hong Kong dipped 0.7 percent following reports that China will set up a “national security agency” in the city to oversee a controversial security law, which is said to override any existing legislation in the city. The bill has raised fears it will end the financial hub’s limited freedoms.
Tokyo lost 0.2 percent and Shanghai ended down 0.1 percent, while Seoul shed 0.7 percent and Wellington dropped 0.9 percent. Bangkok and Jakarta were also down, with Sydney flat.
But Mumbai rose along with Taipei and Singapore.
US investors were spooked Friday when Apple said it would shut some stores it had recently reopened because of new cases.
At the same time, though, European countries are slowly emerging from their economy-sapping lockdowns, with Spain opening its borders, welcoming flights, while schools, cinemas and theaters reopened in France.
“Global stocks are finding support (in) that for now, rising daily COVID-19 cases are staying local and failing to have a global impact. So investors can take some solace in that,” said Stephen Innes at AxiCorp.
“What is vital for the economy is whether governments reimpose wide-sweeping lockdowns. With the overall count low globally, that’s unlikely, whereas proximity or soft lockdowns like in Beijing is more likely.”
But he did say that the fresh infections are “providing a somber reality check, not only thwarting bullish ambitions, but investors are re-focusing on the negative economic consequences that could linger for some time.”
Oil prices dipped after a healthy advance on Friday, as output cuts by major producers and hopes for rising demand are tempered by worries over new infections. With AFP