The market immediately re-treated to a loss after posting some gains during the trading as news about ECQ implementation will push through starting August 6-20.

The broader share index took a sharp and strong beating after the announcement. Blue chips lead the rout today especially a drop down occurring at the run off period

1SMC-7.96%

2ALI-6.97%

3AEV-4.81%

4SM-4.76%

5URC-4.38%

6SMPH-4.12%

7BDO-3.95%

8BLOOM-3.73%

9JFC-3.55%

10DMC-3.54%

11MEG-3.48%

12MBT-3.48%

13BPI-3.48%

14GTCAP-3.46%

15JGS-3.45%

Net foreign selling is at high value of -1.597 Billion

Yesterday, the government announce the entire NCR to enter GCQ with heightened restrictions as initially planned by Metro Manila Mayors from August 1 to 15 which kept the index hovering near its 6,600 resistance. But news circulated immediately that the Mayors have convened and discussed with IATF to take pro active measurements to prevent spread of the virus.

Spokesperson Harry Roque initially rejected the idea because resorting to the ECQ proposed would require the government to pay “Ayuda” and the government may not have enough funds to support the pay to all the people who will be affected

Today, government approved the ECQ by August 6 to 20 to curb the spread of the Delta Variant.

According to NEDA chief Karl Chua ECQ to cost the local economy P105 billion per week, increase poor people by 177,000, and 444,000 more without jobs. However, “these can be partly reversed if we use the 3 weeks to accelerate vaccination of everyone in the high risk areas”

The PSE index rebounded by as much as 2.35% for the day.  Majority of the stocks rebounded after a heavy selling the other day. A bullish engulfing candle can be seen.

Blue chip stocks are mostly in green today.

1ICT5.78%

2ALI4.15%

3SMPH4.14%

4BDO4.01%

5JGS3.97%

6MEG3.45%

7RLC3.05%

8AC2.78%

9PGOLD2.65%

10DMC2.53%

The president in his last year in the office SONA completed delivering his speech yesterday. Among his accomplishments, include Universal Health care, Freedom information bill and Free Tuition fee in college and universities.

He also included that his government is able to settle the long time issue for the “Coco” levy fund by the late president Marcos. According to him the coconut levy fund was return to its rightful owners which are the farmers.

With regards to the lockdowns, he stressed out that we may imposed stricter protocols if the need for it arise. He mentioned that we need to have proper health system management as we cannot afford extension of these lockdowns as it may have irreparable effect on the economy

“It seems that it is really dangerous, we really have to go back to a lockdown,”

“I hope it will not go any further but if something wrong happens I have to be strict. If it requires a new vaccine, we do not have it yet. I don’t know, maybe we will just have to pray for salvation.”

On the economic side of the SONA, the president emphasize the need to pass legislation to amend the Foreign Investments Act, the Retail Trade Liberalization Act, and the Public Service Act.

He urged the the congress in passing the bill and considering it as urgent.

“I would like to renew my call to Congress to immediately pass the amendments of priority legislative measures such as the Foreign Investments Act, the Public Service Act, and the Retail Liberalization Act,”

In addition he pointed out that “The Retail Trade Liberalization Act, when you go to the mall, you have options. If we have more open trade in the retail sector, then the ordinary Filipinos (when) they go to shop, they have more options. When you have more options, the prices fall, the quality increases,”

The economic reform bills are also targeted to be passed by October this year.

There is a net foreign selling of -329Million