Stocks tumble; Ayala Land drops

The stock market fell Wednesday on rising COVID-19 cases and prospects of a deeper contraction in the local economy.

The Philippine Stock Exchange Index dropped 108.95 points, or 1.7 percent, to 6,188.83 on a value turnover of P6.6 billion. Losers beat gainers, 121 to 83, with 33 issues unchanged.

Major property developer Ayala Land Inc. declined 6.2 percent to P34.05, while Merry Mart Consumers Corp., shed  5.1 percent to P3.52.

MacroAsia Corp., a major aviation support service provider and owned by tobacco and airline tycoon Lucio Tan, however, advanced 16 percent to P7.10, while Megawide Construction rose 14.2 percent to P7.71.

The rest of equities in Asia were mixed Wednesday after a healthy run-up the day before as traders weigh positive data suggesting economies are recovering against signs of a second wave of infections and the reintroduction of some lockdowns.

Tokyo lost 0.1 percent and Hong Kong dipped 0.2 percent with Singapore.

Sydney added 0.2 percent, Shanghai gained 0.3, Mumbai added 0.5 percent and Taipei put on 0.4 percent with Wellington and Jakarta more than one percent higher.

Seoul climbed 1.5 percent with help coming from a report that North Korean leader Kim Jong Un has suspended plans for military action against the South in an apparent easing of tensions just over a week after Pyongyang blew up a liaison office.

While governments and central banks have provided a wall of cash to support markets, investors are walking a tightrope between hopes the easing of restrictions will lead to a rebound and the possibility that looser measures will inflame the pandemic again.

After a rally across most regional bourses Tuesday, Wall Street and Europe followed suit after figures pointed to a big improvement in eurozone private-sector activity in June as well as a jump in US new home sales.   

Meanwhile, several countries continued to loosen up, including in Britain where pubs, restaurants, hotels and cinemas were told they could open again from July 4.   

“Through the lens of survey data, at least for now, the world’s essential economies are seeing a V-shaped and coordinated rebound that looks set to (continue) through the summer in the northern hemisphere,” said Stephen Innes at AxiCorp. “Fingers crossed a second wave super spread does not land in our lap.”

However, there are growing concerns of a relapse in some countries that had been opening up, with Tokyo governor Yuriko Koike on Wednesday warning a number of new cases had been found at one workplace.

That comes after Germany reimposed containment measures in two western districts”•home to almost 640,000 people”•after an outbreak at a slaughterhouse infected more than 1,500 workers.

Portugal has also announced new restrictions in and around Lisbon.   

And leading US health officials headed by top infectious disease expert Anthony Fauci warned of “historic” challenges, adding: “COVID-19 activity will likely continue for some time.”

Fauci warned the next two weeks would be “critical to our ability to address… surgings” in Florida, Texas and other states. With AFP