Index closes flat as investors turn cautious

MANILA, Philippines — The stock market opened the week mostly unchanged as it is still waiting for developments on the global economy following the results of the US presidential elections.

Democrat Joe Biden has defeated incumbent Donald Trump in a tight race, the results of which only became clearer on Sunday.

A Biden win is considered beneficial to the Philippines as it is expected to ease the US-China trade war and pave the way for a better and friendlier trade policy between the US and other countries.

The benchmark Philippine Stock Exchange Composite index finished at 6,685.85, just slightly up 0.16 percent or 0.002 percent, while the broader All Shares index rose 16.40 points or 0.41 percent to end at 3,961.12.

Most of the other gauges finished in positive territory led by the mining and oil.

Chris Mangun of AAA Equities gave this comment: “The PSEi ended the day unchanged as last minute-buying covered all of its losses. It opened much lower as selling pressure picked up. It then moved sideways throughout the session until the close wherein it climbed to its highest level for the day. Buyers were mainly on the sidelines despite the rally in other Asian markets. Investors may be waiting for developments on the status of the global economy, as well as the political situation in the US before deciding whether to make a move in the market.”

In terms of specific issues, SM Prime Holdings Inc. carried the whole index higher as its substantial gains covered minor losses in the rest of the blue chips.

SM Prime finished at P35.85 per share, up 3.17 percent.