Index declines on window dressing, virus fears

National Financial Solution > Business Report > Index declines on window dressing, virus fears


COURTESY OF PHILIPPINE STOCK EXCHANGE, INC.

THE Philippine Stock Exchange index (PSEi) started the week in the red as investors rebalanced their portfolios ahead of the month’s close and as the market was concerned over a new coronavirus disease 2019 (COVID-19) variant.

The 30-member PSEi declined by 12.55 points or 0.18% to close at 6,937.96 on Monday. Meanwhile, the broader all shares index gained 15.03 points or 0.35% to 4,244.61.

“Philippine shares traded sideways as investors prepare for window dressing by rebalancing portfolios ahead of the close of the semester,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Moreover, many are turning their attention to the release of ISM manufacturing data, unemployment rate, and trade balance among others,” he added.

Meanwhile, Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said investors went profit taking on Monday following the market’s climb last week, but trading volume remained weak.

Value turnover decreased to P5.35 billion on Monday with 1.59 shares switching hands, from the P6.55 billion with 2.54 billion issues traded on Friday.

“Market sentiment was also weighed by renewed COVID-19 concerns amid the risks brought by the Delta variant,” Mr. Tantiangco said in a Viber message.

The Delta variant, which was first detected in India, is said to be a more transmissible form of COVID-19 by 50% to 60%.

The country has so far reported 17 cases of the Delta variant, which includes one death. The Health department said the infections were detected from incoming international travelers and there have been no reports of community transmission yet.

Sectoral indices were split on Monday. Mining and oil climbed by 128.55 points or 1.37% to 9,450.94; industrials improved by 95.11 points or 0.99% to 9,637.51; and holding firms went up by 12.08 points or 0.17% to close at 6,943.37.

Meanwhile, financials shed 11.26 points or 0.75% to end at 1,489.11; services lost 6.10 points or 0.38% to close at 1,577.45; and property went down by 11.50 points or 0.33% to 3,404.11.

Decliners outperformed advancers, 107 versus 96, while 43 names remained unchanged.

Foreigners turned buyers with P336.82 million in net purchases, a reversal of the P228.39 million in net outflows logged on Friday.

Philstocks Financial’s Mr. Tantiangco said investors are expected to remain cautious on Tuesday as they wait for the government’s announcement on new quarantine classifications.

Metro Manila and Bulacan were placed under general community quarantine (GCQ) “with some restrictions,” while Rizal, Laguna, and Cavite are under GCQ “with heightened restrictions” until June 30.

“Investors may weigh the improving COVID-19 situation in the NCR which is the top contributing region of our economy, against worries over the Delta variant. The local bourse may also take cues from Wall Street’s performance tonight,” Mr. Tantiangco said. — Keren Concepcion G. Valmonte



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