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The 30-member Philippine Stock Exchange index (PSEi) dropped by 102.46 points or 1.56% to close at 6,443.09 on Wednesday. The broader all shares index also went down by 41.57 points or 1.04% to 3,924.29. The market plunged back to the 6,400 level and heavy foreign selling was seen after the Department of Health (DoH) stated that the Greater Manila Area should stay under ECQ for two more weeks to curb the virus count. Over 12,000 daily average of new COVID-19 cases has been reported for the past weeks.

All of the sectoral indices closed in the red on Wednesday. Property declined by 67.5 points or 2.05% to 3,211.92; financials went down by 25.51 points or 1.82% to finish at 1,373.83; holding firms fell by 81.94 points or 1.24% to 6,524.81; services gave up 15.66 points or 1.09% to 1,414.59; mining and oil dropped by 82.94 points or 0.96% to 8,476.93; and industrials decreased by 44.79 points or 0.51% to close at 8,609.69.

Decliners beat advancers, 113 against 97, while 50 tickers closed unchanged. Value turnover climbed to P6.5 billion on Wednesday with 2.04 billion issues switching hands from the P4.7 billion with 1.5 billion shares traded on Tuesday. Net foreign selling ballooned to P1.7 billion on Wednesday from the P483.34 million on Tuesday.

The inflation rate will continue to breach the 2-4% range of the Bangko Sentral ng Pilipinas (BSP) due to tight food supply and increasing oil price. Headline inflation likely settled within 4.2% to 5% in March, the BSP said on Wednesday, on higher oil prices and the peso’s depreciation. This is beyond the 2-4% annual target.

Mainstream media reported that the Philippine Statistics Authority (PSA) will report the March inflation data on April 6. The BSP’s point inflation projection for March is 4.6%, which, if realized, will be slower than the 4.7% print in February but higher than the 2.5% seen in the same month a year ago. The central bank expects inflation to average at 4.2% this year.

Failure to curb the COVID-19 cases by our top government officials and the continued extension of the Inter-Agency Task Force (IATF) lockdown will translate to billions of losses of the economy. As a result, the PSEi may retest the support ranges of 5,800 to 6300 levels.

In times like this, once again, plan your trade and trade your plan.

DISCLAIMER: I'm not a Certified Financial Planner. Published herein is my personal opinion and should not be construed as a recommendation, an offer, or solicitation for the subscription, purchase or sale of any securities.

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