Stocks retreat anew as investors weigh earnings results

MANILA, Philippines — The equities market returned to negative territory yesterday as investors take stock of the latest corporate earnings results and update on the outbreak of the novel coronavirus disease.

Traders said this essentially means investors are still cautiously optimistic even as some have re-entered the market after staying on the sidelines for some time.

The benchmark Philippine Stock Exchange index (PSEi) sfinished at 7,369.78, down 43.22 points, or 0.58 percent.

Likewise, the broader All Shares index slipped 29.11 points, or 0.66 percent, to close at 4,346.75.

Most of the sectoral gauges were down as well except for the holding firms.

Foreign fund managers dumped stocks again yesterday, with net foreign selling at P628 million. Foreign selling reached P3.6 billion, while foreign buying was at P2.9 billion.

But Luis Limlingan of Regina Capital said local shares closed higher week-on-week on signs that China may be planning further measures to support its economy as it reels from a virus-induced slowdown and after US Federal Reserve officials signaled they aren’t anxious to raise interest rates anytime soon.

“New cases in China dipped below one percent since the mass outbreak in January after China altered its counting method again. China is widely expected to cut its benchmark lending interest rate on Thursday, which would add to measures aimed at limiting the impact from business shutdowns and travel curbs on the world’s second-largest economy and include the bailout of certain companies according to Bloomberg,” he said.