Index down as risk averse investors take profit

MANILA, Philippines — With investors taking profit as they remained risk averse due to an upsurge in COVID-19 cases, share prices went downhill for a second straight day.

The benchmark Philippine Stock Exchange index (PSEi) slipped to 6,415.08, down 76.11 points or 1.17 percent.

Likewise, the broader All Shares index dipped 41.256 points or 1.06 percent.

All subsectors went down as well, with the holding firms, financials and property leading the decline.

Total value turnover reached P8.019 billion. Market breadth was negative, 117 to 79, while 64 issues were unchanged.

Traders said the local index experienced a correction as it has risen drastically over the past week.

“Philippine stock market benchmarks ended sharply lower on Monday, but off their intraday lows amid investors jitters over rising COVID-19 cases in the US and Europe. A pre-election stimulus bill is increasingly unlikely - Nancy Pelosi told colleagues the White House won’t accept the Democrats’ national testing plan, the latest sign that negotiations are going nowhere,” said Luis Limlingan of Regina Capital.

Meanwhile, he added Americans are rushing to pharmacies in record numbers for seasonal flu shots, to avoid what public health officials called a ‘twindemic.’

In terms of new cases, the US added around 60,000 new cases, according to JHU and Bloomberg data, while France estimates new cases could be at 100,000 per day, twice the official count.