Index closes lower on lackluster trades

MANILA, Philippines — Stocks closed lower yesterday, capping a week of mostly lackluster trading, as concerns over a second wave of the coronavirus outbreak in Europe and the upcoming US presidential elections kept investors on a wait-and-see stance.

The benchmark Philippine Stock Exchange index or PSEi ended 39.86 points or 0.67 percent lower at 5,898.47 while the broader All Shares index slipped 3.71 points or 0.10 to finish at 3,581.91.

The mining and oil subsector, however, bucked the downtrend as it led gainers after the Duterte administration announced it was lifting the moratorium on oil exploration at the West Philippine Sea.

Pangilinan-led PXP Energy soared 49.9 percent to P7.72 per share following the government’s announcement.

Total value turnover was lower at P5.636 billion. Market breadth was positive, 118 to 89, while 46 issues were unchanged.

On Thursday, President Duterte lifted the moratorium on oil exploration at the West Philippine Sea, which bodes well for PXP Energy.

London-listed Forum Energy plc., a unit of Pangilinan-led Philex Petroleum Corp., holds the license for Service Contract 72 but exploration in the area had been put on hold due to geopolitical tensions.

SC 72 or the Recto Bank concession is located west of Palawan and southwest of the Malampaya gas field.

Around Asian, shares were mixed as investors weighed concerns about the US presidential election and an economic stimulus package, on top of flaring outbreaks of coronavirus.

“The markets’ on again off again love affair with an impending stimulus torrent masks the fact that investor uncertainty is bristling ahead of an expected choppy period in terms of headline risk,” Stephen Innes, chief global market strategist at Axi, said.