Connect with us

Hi, what are you looking for?

Economy

Shares drop as market sentiment turns cautious

STOCKS declined on Tuesday as investors remained cautious, while some cashed out ahead of holidays in observance of Holy Week.

The Philippine Stock Exchange index (PSEi) went down by 62.23 points or 0.94% to end at 6,545.55 on Tuesday. The all shares index likewise dropped by 22.23 points or 0.55% to close at 3,965.86.

“The PSEi took a step back and ended lower as traders took profits from the minor rally in the previous session,” AAA Southeast Equities, Inc Research Head Christopher John J. Mangun said in a Viber message.

The PSEi’s decline was caused by uncertainty in the market, he said.

“The losses were not because of panic selling as investors may have gained some optimism from the President’s announcement of cash stimulus and the removal of restrictions for the private sector to bring in their own supply of vaccines,” Mr. Mangun added.

President Rodrigo R. Duterte approved the proposal of the Department of Budget and Management for aid amid tighter restrictions on movement under which P1,000 per person and not more than P4,000 per family will be allocated. The approved proposal will cost some P23 billion, which will be financed through the Bayanihan to Recover as One Act.

“The general sentiment remains cautious amid the uncertainty on the extension of stricter quarantine on the country’s capital,” Mr. Mangun said.

He noted that the market traded lower than usual “due to the uncertain environment.”

Meanwhile, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said investors are booking ahead to the trading break for the holidays on Thursday and Friday to commemorate Holy Week and investors are choosing “to keep in cash in the meantime.”

Majority of the PSE’s sectoral indices declined on Tuesday, except for industrials, which gained 88.98 points or 1.03% to 8,654.48.

Meanwhile, property lost 69.99 points or 2.09% to close at 3,279.42; financials went down by 21.35 points or 1.5% to 1,399.34; services slumped by 10.48 points or 0.72% to 1,430.25; holding firms fell by 36.67 points or 0.55% to finish at 6,606.75; and mining and oil declined by 31.08 points or 0.36% to 8,559.87.

Value turnover went down to P4.7 billion on Tuesday with 1.5 billion issues traded, from the P7.27 billion with 2.88 billion shares switching hands on Monday.

Decliners narrowly outnumbered advancers, 104 versus 103, while 46 names closed unchanged.

Foreigners turned sellers anew, with net outflows totaling P483.34 million on Tuesday against the P30.43 million in net purchases seen the previous trading day.

“Market will continue to be volatile, consolidating within a narrow range 6,400-6,500 with a downward bias due to the lockdown duration uncertainties, eliciting rating agencies’ warning on [the] Philippines’ credit rating,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message. — Keren Concepcion G. Valmonte

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

A UK-backed mission which will search for Earth-like planets orbiting alien stars has been given the green light to continue with its development after...

Investing

According to a new survey a staggering 3 out of 5 UK professionals are unhappy with their current salary. The study, which surveyed 1,500...

Investing

A mental health crisis is looming among small business owners – with 82% reporting that their mental health has already declined due to the...

Investing

One of Britain’s biggest banks has called on the “social conscience” of large businesses to encourage them to settle bills to small and medium-sized...

Investing

The UK’s deep regional divides are widening despite the government’s promises to level up the country, a think tank for the north of England...

Investing

Britons are consuming too much alcohol at home due to sessions lasting longer than pub visits, an expert said, after data suggested millions of...

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.