Lack of impetus drags stocks lower

MANILA, Philippines — Bearish sentiment prevailed in yesterday’s trading session, sending the stock market gauge further south.

The benchmark Philippine Stock Exchange index, a barometer of investor confidence, slipped deeper into bear territory yesterday, closing 34.95 points, or 0.49 percent, lower at 7,063.20.

Likewise, the broader All Shares continued to decline, shedding 22.15 points, or 0.50 percent, to finish at 4,347.06.

Most counters were likewise negative except for the mining and oil and property which managed to stay afloat yesterday.

Total value turnover reached P8.050 billion. Decliners beat gainers by a huge margin, 129 to 76 while 46 issues were left unchanged.

Traders said while no new negative development surfaced yesterday, the overall bearish sentiment was enough to drag the market and keep investors away from the market.

BDO Unibank chief market strategist Jonathan Ravelas said the bearish sentiment has affected the market, clearly showing that the market is being dragged by negative perception.

He said that as sentiment deteriorates, investors go with the flow and are simply choosing to pull out.

Furthermore, traders said investors were not ready to go back and hunt for bargains just yet even if the prices of Philippine equities are already too low.

Some traders see the trend continuing next week which may pull the market to below the 7,000 mark.