Stocks closed virtually flat Tuesday amid fears over a spike in coronavirus infections around the world, the reimposition of containment measures, and China-US tensions.
The Philippine Stock Exchange Index added 0.24 point, or 0.004 percent, to 6,172.81 on a value turnover of P5.1 billion. Losers, however, beat gainers, 126 to 87, with 29 issues unchanged.
Major property developer Ayala Land Inc. rose 3.4 percent to P33.50, while Puregold Price Club Inc. of retail tycoon Lucio Co climbed 3 percent to P48.
GMA Network Inc. slumped 13.2 percent to P5.77, while MerryMart Consumer Corp., the supermarket chain owned by businessman Edgar Sia II, sank 10.5 percent to P2.65.
The rest of Asian equities ended lower Tuesday, while oil prices were also hit by speculation top producers will begin tapering their output cuts.
And news that Singapore’s economy, considered a regional barometer, contracted a mind-boggling 41 percent in the second quarter provided a stark reality-check for traders.
After hitting lows in March, markets have been surging thanks to government support and optimism that the world economy will bounce back as crippling lockdowns are eased.
But a worrying increase in new virus cases across the planet has forced governments to revert to measures aimed at preventing the disease’s spread.
Asian markets tracked a weak lead from Wall Street.
Hong Kong fell 1.2 percent, Shanghai dropped 0.8 percent and Tokyo lost 0.9 percent.
Sydney fell 0.6 percent and Seoul was off 0.1 percent with Taipei and Jakarta flat. Wellington was up 0.5 percent.
Singapore was 0.2 percent down after figures showed the city-state’s trade-dependent economy plunged into recession for the first time in a decade as it contracted a record 41.2 percent on-quarter in April-June and 12.6 percent on-year.
The worse-than-expected figures will ring alarm bells for Asia’s many trade-dependent economies as Singapore is typically hit first before ripples spread across the region.
California, the richest of the US states, ordered all indoor restaurants, bars, and movie theaters to re-close, while churches, gyms, shopping malls, hair salons, and non-essential offices have been told to shut up shop in several densely populated counties, including Los Angeles.
The measures follow new restrictions imposed in Texas, Arizona, Florida, and other major states.
Meanwhile, Hong Kong on Monday announced sweeping new curbs as the city suffers a relapse. Melbourne is already under a new lockdown and there are signs of new outbreaks in Sydney.
The new spikes come as World Health Organization chief Tedros Adhanom Ghebreyesus warned: “There will be no return to the ‘old normal’ for the foreseeable future.”
He added that without governments adopting a comprehensive strategy, the situation would get “worse and worse and worse.”
The developments overshadowed an announcement from Pfizer and BioNTech that two of four vaccine candidates for the virus had received “Fast Track” designation from the US Food and Drug Administration. With AFP