Connect with us

Hi, what are you looking for?

Economy

Stocks drop on profit taking, higher gov’t debt

THE MAIN INDEX ended in negative territory on Wednesday following news on the government’s outstanding debt and as investors booked their profits after the market’s two-day rally.

The benchmark Philippine Stock Exchange index (PSEi) fell 8.42 points or 0.12% to finish at 6,859.46, while the broader all shares index dropped 0.91 points or 0.02% to end at 4,143.26.

Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a mobile phone message that the market ended lower following the release of data on the government’s outstanding debt.

“Concerns over the jump of our national government’s outstanding debt and its possible repercussions to the economy weighed on (market) sentiment,” Mr. Tantiangco said.

The Bureau of the Treasury (BTr) on Tuesday reported that the national government’s outstanding debt reached P9.8 trillion at the end of December on higher borrowings for the state’s pandemic response.

The figure is 26.7% higher than the P7.73 trillion seen at end-2019, and brought the Philippines’ debt-to-gross domestic product ratio to 54.5% as of end-2020 compared to 39.6% the prior year.

Timson Securities, Inc. Head of Online Trading Darren Blaine T. Pangan said the market closed lower as investors booked profits after the PSEi’s two-day winning streak.

“The market ended lower despite trading in green territory during the first few hours of the day, as investors chose to take profits after two consecutive days of rising from the 6,600 level up to the 6,800 area,” Mr. Pangan said in a mobile phone message.

AAA Southeast Equities, Inc. Research Head Christopher John Mangun likewise blamed profit taking for the PSEi’s decline, adding investors remained cautious during the trading day.

“The rally may have kept selling at bay however, it has not drawn too much buying. Investors continue to take a wait-and-see attitude and monitor current economic developments,” Mr. Mangun said in an e-mail.

Majority of sectoral indices closed lower on Wednesday. Property declined 13.58 points or 0.38% to 3,500.89; mining and oil retreated 30.61 points or 0.35% to 8,635.35; financials went down 4.64 points or 0.32% to 1,425.54; and services lost 3.84 points or 0.25% to 1,499.89. Meanwhile, industrials improved 23.91 points or 0.26% to 9,064.17 and holding firms gained 10.79 points or 0.15% to 6,960.95.

Value turnover on Wednesday reached P9.58 billion with 40.57 billion issues switching hands, lower than the P10.66 billion with 56.17 billion issues logged during the previous session. Decliners edged out advancers, 110 against 106, while 44 names ended unchanged. Net foreign selling declined to P460.10 million on Wednesday from the P567.48 million in net outflows on Tuesday.

“The PSEi may continue moving sideways until the end of the week,” Mr. Mangun said.

“In the remaining days of the week, we’ll have to see if the support at 6,600 holds,” Timson Securities’ Mr. Pangan said. — Revin Mikhael D. Ochave

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

An emerging Australian company yet to construct a major project will be responsible for delivering on UK hopes to electrify its automotive industry after...

Economy

DIYARBAKIR/ANKARA, Turkey — More than 500 people were killed and thousands injured on Monday, after a major earthquake of magnitude 7.8 struck central Turkey...

Economy

BEIJING/WASHINGTON — The US military said on Sunday it is searching for remnants of the suspected Chinese surveillance balloon it shot down a day...

Economy

JAKARTA — Armed with the world’s largest reserves of nickel and a ban on the export of nickel ore, Indonesia is making itself indispensable...

Economy

LONDON — Britain faces its largest ever strike by health workers on Monday as tens of thousands of nurses and ambulance workers walk out...

Economy

SINGAPORE — Polluting single-use plastic production rose by 6 million tons per year from 2019 to 2021 despite tougher worldwide regulations, with producers making...

You May Also Like

Investing

Browsing history makes referring to sites and pages you’ve visited in the past seamless. It’ll help you recall what page you checked out on...

Investing

The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...

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...

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...

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.