Stocks slide on lack of positive catalysts

MANILA, Philippines — Share prices retreated for a third straight session yesterday due to the lack of positive catalysts on the economic front and continued worries over the COVID health crisis.

The benchmark Philippine Stock Exchange index or PSEi fell by 60.85 points or 0.93 percent to a two-week low of 6,457.79.

Likewise, the broader All Shares index slipped to 3,953.81, down 34.44 points or 0.86 percent.

Total value turnover reached P6.10 billion. Market breadth was negative, 134 to 64, while 50 issues were unchanged.

Foreign funds were net sellers for the eighth consecutive day with P1.4 billion.

“The PSEi ended lower yesterday, just a few points away from its 6,440 support level as selling pressure picked up,” said Chris Mangun of AAA Equities.

He said market investors are waiting for more positive catalysts amid the still significant number of COVID-19 cases, averaging at 10,000 cases a day.

“The lack of positive catalysts has kept the sentiment subdued. Business restrictions are less restrictive under current MECQ guidelines, however the constant rise of cases continue to spook investors. Prices are approaching levels that have attracted buyers just a few weeks ago, which may attract buyers to come in,” Mangun said.

Luis Limlingan of Regina Capital said yesterday’s downtrend was also due to the possibility of stricter lockdown measures should the number of new cases continue to rise.

Around Asia, shares were mostly higher yesterday, with hopes growing for a global economic rebound despite surging coronavirus cases in many places.