Connect with us

Hi, what are you looking for?

Economy

Stocks drop on lack of leads, Delta variant fears

PHILIPPINE shares closed in negative territory on Wednesday amid a lack of catalysts and worries over the Delta variant of the coronavirus disease 2019 (COVID-19).

The bellwether Philippine Stock Exchange index (PSEi) dropped by 54.74 points or 0.78% to end at 6,901.91 yesterday, while the broader all shares index fell by 17.79 points or 0.41% to close at 4,244.58.

Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a mobile phone message that the market fell on Wednesday amid the absence of leads and lingering concerns over the new COVID-19 variant.

“The sentiment was further pulled by the worries over the Delta variant and by the downgrade of the Philippine economic growth forecast to 6.4% this year by the ASEAN+3 Macroeconomic Research Office (AMRO),” Ms. Alviar said.

In its latest Annual Consultation Report released on June 29, AMRO revised its 2021 gross domestic product (GDP) for the Philippines to 6.4%, lower than its previous estimate of 6.9% growth.

Despite being lower, AMRO’s estimate is still within the 6-7% growth target of the government for 2021.

Darren Blaine T. Pangan, trader at Timson Securities, Inc., said in a mobile phone message that the bourse ended lower as investors remained cautious as they continue to monitor the progress of the government’s vaccination program.

About 10.07 million doses of COVID-19 vaccines have been administered since the start of the country’s inoculation program in March, the Health department said on Monday. Of the total, 7.54 million were first does while the remaining 2.53 million were second doses.

The government is eyeing to fully vaccinate as many as 70 million people against COVID-19 by yearend to attain herd immunity.

Sectoral indices were mixed at the end of Wednesday’s trading. Property went down by 59.12 points or 1.74% to 3,321.71; holding firms declined by 65.01 points or 0.93% to 6,920.49; and financials retreated by 12.92 points or 0.85% to 1,498.54.

Meanwhile, mining and oil improved by 86.96 points or 0.92% to close at 9,543.67; services gained 7.86 points or 0.49% to 1,590.80; and industrials rose by 3.09 points or 0.03% to 9,630.09.

Value turnover reached P6.38 billion on Wednesday with 1.85 billion issues switching hands, up from the P5.21 billion with 1.82 billion shares seen the prior day.

Decliners bested advancers, 109 against 94, while 47 names ended unchanged.

Net foreign selling amounted to P730.73 million, higher than the P379.35 million logged on Tuesday.

“6,800 is where support may be drawn, while 7,080 remains the PSEi’s immediate resistance area,” Timson Securities’ Mr. Pangan said.

“The local bourse will test the 6,900 support area, but given the lack of positive catalysts, it may fail to stay above that level. Investors will be monitoring the COVID-19 daily cases, as well as the new more infectious variant, the Delta Variant. Meanwhile, we may also see month-end window dressing, particularly in the index stocks,” Philstocks Financial’s Ms. Alviar added. — 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

The UK government will invest £100m in Britishvolt as the car battery manufacturing startup seeks to build Britain’s first large-scale “gigafactory” in the north-east...

Investing

Bankers and accountants are among those being summoned back to their offices after the government scrapped its work-from-home guidance in England with immediate effect....

Investing

The kitchens of Michelin-starred restaurants too often descend into alternative “moral universes” where bullies and bad behaviour thrive, a study has suggested. While Gordon...

Investing

A company controlled by the Duke of York and used to manage his investments is more than £200,000 in debt, according to newly filed...

Investing

Rogue waste collectors who fly-tip household rubbish will be targeted under a government crackdown. Fly-tipping increased sharply last year to 1.1 million cases in...

Investing

Peloton Interactive lost more than 25 per cent of its value on Wall Street at one point last night after the exercise bike maker...

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.