Connect with us

Hi, what are you looking for?


Stocks drop on profit taking, economic outlook

By Revin Mikhael D. Ochave, Reporter

SHARES ended in negative territory on Wednesday as investors booked profits and as market sentiment was affected by the revised gross domestic product (GDP) forecast of the World Bank for the Philippines.

The bellwether Philippine Stock Exchange index (PSEi) fell 101.01 points or 1.4% to end at 7,102.66 on Wednesday, while the broader all shares index dropped 32.92 points or 0.76% to close at 4,253.13.

Philstocks Financial, Inc. Research Associate Claire T. Alviar said the market ended weaker on profit taking, which was further dampened by the trading day’s net foreign selling result.

Net foreign selling on Wednesday reached P685.74 million, a turnaround from the foreign inflows worth P113.94 million seen on Monday.

“At the 7,200 level, PSEi’s price-to-earnings ratio is already at 21x which is overvalued compared with its historical average of around 18x so traders took profits already after [Tuesday]’s break,” Ms. Alviar said in a mobile phone message.

Ms. Alviar added investor sentiment was dragged by the World Bank’s revised forecast for the country’s GDP performance this year.

In its latest Philippines Economic Update released Tuesday, the World Bank once again lowered its GDP forecast for the Philippines this year to an 8.1% contraction from the 6.9% slump penciled in last October.

The government’s economic team expects GDP to shrink by 8.5-9.5% this year.

For AAA Southeast Equities, Inc. Research Head Christopher John Mangun, the bourse dropped as investors were concerned about the possible spike in local coronavirus disease 2019 (COVID-19) cases after the holiday season as a result of increased mobility and gatherings.

“Investors are not willing to pay a higher price for blue chips, at least not before the holidays. They also may want to see how well the economy performs this December before justifying a higher valuation,” Mr. Mangun said in an e-mail.

Most sectoral indices at the PSE closed in the red on Wednesday. Property declined 65.4 points or 1.8% to 3,558.60; holding firms went down 132.64 points or 1.78% to 7,313.74; services retreated 25.46 points or 1.64% to 1,522.02; and financials shrank 7.02 points or 0.47% to 1,477.88.

On the other hand, mining and oil climbed 336.38 points or 3.81% to 9,159 while industrials increased 69.48 points or 0.74% to 9,443.78.

Value turnover on Monday stood at P9.88 billion with some 99.2 billion issues switching hands, higher than the previous session’s P9.56 billion with some 45.27 billion issues.

Advancers outnumbered decliners, 132 against 117, while 27 names ended unchanged.

“We may continue to see the main index move sideways between 6,700 and 7,200 in the coming weeks,” Mr. Mangun said.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



THE INTERNATIONAL Monetary Fund (IMF) said macroeconomic policy support and reforms may help diminish the pandemic’s scarring effect on the Philippine economy. “Some economic...


The country’s retirement income system is based on a small basic pension and an earnings-related Social Security System. — PHILIPPINE STAR/ MICHAEL VARCAS THE...


Global oil prices have spiked in recent weeks due to lack of supply and strong demand as more countries reopened. — PHILIPPINE STAR/ MICHAEL...


A Filipino uses a mobile phone in Parañaque, Aug. 7, 2018. — REUTERS/ERIK DE CASTRO DIGITAL TRANSFORMATION is estimated to create up to P5...


By Angelica Y. Yang, Reporter SN Aboitiz Power (SNAP) said the global health emergency had pushed back the timeline of its planned Alimit hydropower...


AYALA-LED AC Energy Corp. is moving to fully acquire ownership of renewable energy (RE) platform UPCAC Renewables Australia, after announcing that its management has...

You May Also Like


Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...


Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...


As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...


Pfizer Inc on Wednesday raised its 2021 sales forecast for its COVID-19 vaccine by 29% to $33.5 billion, and said it believes people will...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!