Connect with us

Hi, what are you looking for?

Economy

PSEi drops on concerns over COVID-19 variants

PHILIPPINE shares declined on Wednesday, along with other markets in the region, as investors pocketed their gains and with concerns over new coronavirus disease 2019 (COVID-19) variants clouding market sentiment.

The Philippine Stock Exchange index (PSEi) declined by 49.43 points or 0.7% to close at 6,943 on Wednesday, while the broader all shares index lost 26.50 points or 0.61% to 4,272.16.

“Market continued on profit taking due to lackluster news on the local front and with most Asian markets [down],” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message. “Most investors are on the sidelines with value turnover below [the] daily average of seven billion and foreign investors on the selling mode.”

Value turnover decreased to P4.46 billion with 1.70 billion shares traded on Wednesday from the P5.1 billion with 2.51 billion issues seen on Tuesday.

Meanwhile, net foreign selling surged to P211.97 million on Wednesday from P37.55 million the previous day.

“Delta and Lambda virus variant, low vaccine supply, and peso weakness toward P50 on the dollar have prompted investors’ profit taking. But recent government dollar borrowing should temper dollar demand surge while vaccine supply should improve as more of it arrive this month,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message.

“These worries are making the PSEi look very pricey at PE (price-to-earnings ratio) of 19.67x on this year’s earnings with much of the positive news flow on inflation, unemployment and consumer confidence fully digested upon breakout above 7,000,” she added.

The Lambda COVID-19 strain is said to be more dangerous than the Delta variant, which is already a more transmissible version of the disease. The Lambda variant has been detected in over 30 countries in the past month.

The Philippines has not yet reported any Lambda COVID-19 infection. However, it logged 19 cases of the Delta variant as of Monday.

The country expects to receive around 30 million COVID-19 jabs in July and August.

All sectoral indices closed in the red on Wednesday. Services went down by 21.09 points or 1.29% to 1,606.97; mining and oil dropped 97.06 points or 0.98% to 9,770.84; holding firms shed 53.65 points or 0.76% to finish at 6,956.88; financials inched down by 9.66 points or 0.63% to 1,502.76; industrials lost 53.39 points or 0.54% to 9,684.85; and property declined by 16.30 points or 0.48% to 3,351.95.

Decliners beat advancers, 127 versus 59, while 57 names remained unchanged.

For today, investors will continue to monitor economic data releases amid a lack of fresh leads.

“[Market will move] most probably sideways with positive bias if industrial production goes up for the month of May,” Diversified Securities’ Mr. Pangan said. — 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

Economy

Headline inflation stood at 4% in July, the government reported on Thursday. — PHILIPPINE STAR/ MICHAEL VARCAS PHILIPPINE INFLATION eased to a seven-month low...

Economy

ALL COMPANIES included in the Philippine Stock Exchange (PSE) indices will be required to raise their public float level to 20% by December 2022,...

Economy

THE PHILIPPINES should focus on diversifying its economy to produce high-quality jobs and more competitive products, according to the United Nations in the Philippines....

Economy

SAN Miguel Corp. (SMC) returned to profitability to finish the first half with a net income of P29.57 billion, reversing last year’s P3.99-billion loss,...

Economy

AYALA-LED AC Energy Corp. reported an attributable net income of P1.42 billion in the second quarter, down by 28% from P1.97 billion year on...

Economy

PLDT, Inc. saw its attributable net income for the second quarter grow 10.9% to P7.1 billion, as high demand for data and broadband continued....

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...

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...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Economy

THE Securities and Exchange Commission (SEC) has warned the public from investing or to stop any investment in a group named Maxxprofit Computer Trading...

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.

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!