The local stock market plunged after the government announced a hard lockdown just a few days after saying it is not necessary.

The main index fell 226.30 points or 3.48 percent to close at 6,273.23 with the Property and Holding Firms counters suffering the biggest losses.

Volume improved to 1.81 billion shares worth P6.27 billion as losers dominated at 159 against 47 gainers and 42 unchanged.

“Investors sold off to close the weekend and the month to clean their portfolios ahead of the ghost month of August, while others kept to cash to assess the impact of reverting back to ECQ after a week,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

Starting July 31, outdoor dining will not be allowed under the stricter GCQ. Take-out and food deliveries are the only services allowed.

Philstocks Financial Research and Engagement Officer Claire Alviar said the PSEi broke through its 6350-6400 support area, following the imposition of the strictest lockdown measure or the Enhanced Community Quarantine (ECQ) in Metro Manila.

“Once again, this would hurt most businesses, particularly the non-essentials as some of them would be prohibited to operate or the capacity would be limited. This could weigh on their earnings and would adversely affect their recovery,” she noted.

Source: Manila Bulletin (