Index plunges on profit taking

MANILA, Philippines — The stock market took a breather yesterday, declining again as some investors took profits and as it tracked the decline in US markets.

The benchmark Philippine Stock Exchange index lost a whopping 139.18 points or 2.46 percent, to finish at 5,510.83.

Likewise, the broader All Shares index slipped 60.61 points, or 1.78 percent, to finish at 3,332.44.

Most of the indexes were down as well except for the industrial sector.

Total value turnover reached P5.95 billion. Market breadth was negative with 102 and 88 gainers, while 37 issues were left unchanged.

Regina Capital said: “Investors sold ahead of the long weekend as news of an additional $1trillion stimulus from the US was priced in the day before. The COVID-19 case remained fluid as more eurozone countries taking up movement constraint. In Japan, Prime Minister Shinzo Abe declared a state of emergency while unveiling nearly $1 trillion of stimulus. On the other hand, the United Kingdom and New York state reported the worst daily fatalities since the outbreak. US markets gained over two percent last night but ended in reds at close. The White House is reportedly developing plans to reopen the US economy based on widespread testing.”

Market investors continue to keep a close watch on how countries are containing the pandemic.

“Data on COVID-19 continued to indicate a slower increase in new cases in Spain, Italy and now also the US – but the growth rate accelerated in France and the confirmed mortality rate is grinding higher in most countries,” said Luis Limlingan of Regina Capital.