MANILA - Philippine share prices took a beating on Monday after President Rodrigo Duterte announced that Metro Manila and several of the most economically productive provinces near the capital would again be placed under the second strictest quarantine measure.
The PSE index fell 212.53 points or 3.59 percent and closed at 5,715.92.
Total volume was at 1.6 billion, with a value of P6.59 billion.
Shares of firms in the Sy Group were some of the most actively traded in the market.
SM Investments Corp was down 3.37 percent, SM Prime Holdings lower by 4.83 percent, while BDO dropped 3.41 percent.
Ayala Corp meanwhile was down 3.65 percent, and Ayala Land shed 6 percent.
Universal Robina Corp meanwhile bucked the trend as its share price went up 2.12 percent.
COL Financial vice president April Lee Tan says returning to stricter lockdown will be harder this time.
“When we first locked down in March we were coming from a position of strength, the companies had accumulated a lot of profits,” Tan said.
“At this point those reserves are finished.” She said donations from businesses are likely to be less, and even the government is saying that it doesn’t have any more money.
Tan said that while the market has already priced in a weak second quarter, there may still be knee-jerk reaction sell offs when inflation and GDP numbers are announced later this week.
“After the initial shock it might actually be an opportunity to buy stocks because there’s more clarity, more visibility going forward like how these companies are going forward under the new normal,” Tan said.
Some of the companies scheduled to report their second quarter performances are Ayala Land, Metro Pacific Investments Corp, PLDT, San Miguel Corp, and International Container Terminal Services Inc.