Connect with us

Hi, what are you looking for?

Economy

PSEi sinks 3.5% as rising virus cases cause sell-off

STOCKS ended lower on Friday as investors booked profits amid surging coronavirus disease (COVID-19) infections and stricter lockdown restrictions in some provinces.

The benchmark Philippine Stock Exchange index (PSEi) slid 239.22 points or 3.49% to end at 6,612.62 on Friday. Meanwhile, the all shares index declined 101.01 points or 2.45% to close at 4,007.33.

“The market suffered a significant sell-off and on large value turnover, on sustained foreign outflows. Investors took to the exits, as the news of surging COVID-19 infections and uncertainty over vaccine rollouts clouded recovery expectations,” PNB Securities, Inc. President Manuel Antonio G. Lisbona said in a text message.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said shares continued to decline as many provinces were placed under stricter restrictions due to the rising virus cases.

“In addition, investors are still assessing the growth prospects of the country after the latest GDP (gross domestic product) figures came out,” he said in a Viber message.

The Philippine Statistics Authority reported on Thursday that GDP shrank 9.5% in 2020, the worst contraction on record. In the fourth quarter, the economy contracted by 8.3%.

All sectoral indices ended Friday’s session with losses. Mining and oil dropped 390.16 points or 4.54% to 8,187.82; holding firms lost 282.06 points or 4.01% to 6,742.39; property gave up 105.17 points or 3.02% to 3,372.87; industrials declined 249.44 points or 2.81% to 8,627; services went down 38.73 points or 2.6% to 1,450.27; and financials decreased by 32.56 points or 2.3% to 1,378.35.

Value turnover stood at P11.8 billion with 41.76 billion issues switching hands, lower than the previous session’s P8.80 billion with 56.22 billion issues.

Decliners beat advancers, 133 to 91, while 44 names closed unchanged.

Net foreign selling ballooned to P3.13 billion on Friday from the P1.31 billion seen in the previous trading day.

“Tuesday’s break of the 7,000 psychological support level and today’s decline, if sustained, could see the market testing 6,400 to 6,500,” Mr. Lisbona said on Friday. — A.Y. Yang

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Your email address will not be published.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!

Latest

Investing

Elon Musk has suggested that he could seek to pay a lower price for Twitter, as the social media company’s would-be owner expressed further...

Investing

Tens of thousands of apprenticeships could be created and hundreds of millions of pounds saved if the flawed apprenticeships levy were reformed, according to...

Economy

The man accused of killing a doctor and wounding five other people in a shooting at a Taiwanese-American church banquet in California methodically planned the attack because he was upset over Chinese-Taiwanese tensions,...

Investing

Workers should “think and reflect” on whether to ask for pay rises because they risk fuelling inflation, the governor of the Bank of England...

Investing

Ofgem has come under fire for extending rules that will effectively prevent energy suppliers from offering deals that are significantly cheaper than the price...

Investing

Working from home is more popular in Britain than in continental Europe and North America, with commuting journeys down by more than a fifth...

You May Also Like

Investing

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

Economy

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...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Investing

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

Disclaimer: SmartRetirementReport.com, 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.