Connect with us

Hi, what are you looking for?

Economy

PSEi drops as virus weighs on investor sentiment

STOCKS declined on Wednesday as the coronavirus disease 2019 (COVID-19) situation here and abroad continued to affect market sentiment.

The Philippine Stock Exchange index (PSEi) went down by 61.03 points or 0.93% to close at 6,439.39 on Wednesday, while the all shares index declined by 24.49 points or 0.61% to end at 3,964.34.

“The PSEi swung back and ended lower again today due to losses in a couple of large-cap blue chips, mainly $SMPH (SM Prime Holdings, Inc.) and $SM (SM Investments Corp.),” AAA Southeast Equities, Inc. Research Head Christopher John J. Mangun said via e-mail.

“The increased selling pressure on blue chips may be a sign of frustration from investors due to the lack of concrete positive developments on the health crisis,” Mr. Mangun added. “Trading volumes still remain low. There may be some optimism because of the drop in new COVID-19 cases reported the day before, but overall, the sentiment remains cautious.”

Value turnover inched up to P5.37 billion on Wednesday with 3.46 billion shares switching hands, from the P5.52 billion seen on Tuesday with 5.84 billion shares.

Philstocks Financial, Inc. Research Associate Claire T. Alviar said concerns on rising COVID-19 cases around the world also affected market sentiment.

“In Asia, some parts of Japan may put on lockdown due to the new wave of COVID-19 infections and India sets new records for cases and deaths,” Ms. Alviar said in a Viber message on Wednesday. “Also, the restriction of the US on traveling to the Philippines weighs further on sentiment.”

“This continues to cause some anxiety for investors, as it may delay the current global economic growth projections,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a separate Viber message.

The Health department on Wednesday reported 9,227 new COVID-19 infections, which brought the country’s tally to 962,307. Active cases are at 116,434.

Majority of the PSE’s sectoral indices ended the day in the red except services, which inched up by 12.19 points or 0.84% to finish at 1,451.40.

Meanwhile, property lost 67.14 points or 2.09% to end at 3,136.11; holding firms decreased by 67.26 points or 1.02% to 6,526.58; mining and oil declined by 69.83 points or 0.75% to close at 9,190.16; financials went down by 8.88 points or 0.63% to 1,391.60; and industrials gave up 13.53 points or 0.15% to finish at 8,690.36.

Advancers outperformed decliners, 108 against 92, while 52 names closed unchanged.

Net foreign selling climbed to P776.80 million on Wednesday from the P486.97 million in the previous trading day.

AAA Southeast Equities’ Mr. Mangun said the main index might “bounce back” in the next session, while Timson Securities’ Mr. Pangan said he expects the index to finish between the 6,400 to 7,300 range. — K.C.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

Economy

Leading digital solutions platform Globe was recently recognized by the ASEAN Innovative Business Platform (AIBP) for being a trailblazer on environmental, social, and governance...

Economy

  Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their...

Economy

NEW TAXES may have to be introduced to fund the incoming Marcos administration’s priority projects, but the timing would have to be carefully considered,...

Economy

By Revin Mikhael D. Ochave, Reporter AS FERDINAND R. MARCOS, JR. is poised to assume office on June 30, business groups are hoping the...

Economy

THE PHILIPPINES may find it more costly to service its foreign debts, as the peso slumped to its weakest value against the US dollar...

Economy

By Arjay L. Balinbin, Senior Reporter SPECTRUM USER FEES (SUF), which telecommunications companies described as excessive, are unlikely to be lowered under the Marcos...

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.