Index slips anew on lack of catalysts

MANILA, Philippines — Concerns over developments abroad as well as the lack of positive catalysts at home drove share prices further down yesterday, traders said.

The bellwether Philippine Stock Exchange index or PSEi finished at 6,005.40, down 36.72 points or 0.66 percent, briefly retreating below the 6,000-mark earlier in the session.

Likewise, the broader All Shares index went down by 18.30 points or 0.51 percent to end at 3,573.06. All other gauges ended in the negative zone as well.

Total value turnover was thin at P4 billion as risk averse investors opted to stay in the sidelines.

Market breadth was negative, with 131 losers to 64 gainers, while 46 issues were unchanged.

The Monetary Board of the Bangko Sentral ng Pilipinas (BSP), meanwhile, chose to keep interest rates steady to support the economy which has entered into a recession for the first time in 29 years.

“PSEi shares finished lower as the US Federal Open Market Committee cut its economic growth forecast for the remainder of 2020 and stressed the need for more fiscal aid in the wake of the coronavirus pandemic. In addition, the US ended three agreements with Hong Kong covering extraditions and tax exemptions. The two countries also plan to reschedule postponed trade deal talks, though no date has been set. The Fed pointed at an uneven recovery, tempering optimism over a second-half economic rebound and appearing to back off from a readiness to clarify its rate guidance, minutes from July’s meeting showed,” said Luis Limlingan of Regina Capital.

Meanwhile, he added concerns over ongoing talks within OPEC as Saudi Arabia and Russia are stressing the need for unity and urging producers to maintain their commitments to a deal to curb output.