Share prices tumble anew as selling intensifies

MANILA, Philippines — The local stock market ended nearly flat yesterday as selling pressure from the past several days continued.

The benchmark Philippine Stock Exchange index (PSEi) closed at 7,140.29, down 3.01 points or 0.04 percent while the broader All Shares index slipped 19.14 points or 0.44 percent to end at 4,280.98.

Total value turnover reached P12.506 billion. Decliners trumped advancers, 169 to 66, while 39 issues were unchanged.

Chris Mangun of AAA Southeast Equities said there was increased selling pressure at the open which lasted throughout the session as sentiment remains cautious.

“This trend will continue until investors see clearer signs that the economy continues to recover. Most of the action was in second-liners and speculative issues. The bloodbath intensified for speculative third-liners as several ended at their floor price for a second day in a row giving up most of their gains from the beginning of the week. Investors that have jumped the gun are now paying the price,” Mangun said.

RCBC economist Michael Ricafort said investors seemingly ignored the inauguration of US President Joe Biden which is expected to have positive effects on the Philippines and the rest of Asia.

These include more US stimulus and government spending as advocated by the Democrats that could lead to faster economic recovery in the US and worldwide since the US is the world’s biggest economy and among the biggest trade partners of the Philippines.

There could also be possible easing or reduction in the US-China trade war, which has been lingering over the past two to three years.