This morning, Philippines shares fell 1% as a further 2,500 cases were announced on Wednesday. In the past week 10,000 new cases were announced in the Philippines, a fifth of their 50,000 total. Southeast Asian stocks generally trace the Shanghai composite index, which is up 1.3% this morning and has maintained its bullish outlook on Asian equities so investors remain confident that the Philippines will follow suit. The Shanghai index is up 18% in the past month hence the buy signal originating from governments lifting lock down is outweighing the sell bias which stems from the fears of a second wave.

As seen in past few weeks, some countries have re-entered lockdown because of a spike in cases and Philippines president Duerte says a lockdown extension is a possibility. Although some of you may have become normalized to the lockdown environment. Extended periods of economic inactivity, especially for smaller countries is a dangerous one. Despite the fact there is cheap cash floating around due to a barrage of stimulus packages the fact is many people may yet lose their jobs. Investors fear that even if businesses are kept going in the short term by the packages, in the medium to long term they may struggle to find customers for their products or services as a proportion of their client base is struggling for employment.

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