Stocks take a breather as investors on sidelines

MANILA, Philippines — Stocks failed to sustain the strong upward momentum in the past two days as investors stayed mostly on the sidelines to wait for more concrete developments on both the economic and health fronts.

The benchmark Philippine Stock Exchange index (PSEi) closed 26.83 points or 0.38 percent lower to 6,875.71 while the broader All Shares index finished at 4,154.36, down 5.85 points or 0.14 percent.

Total value turnover was notably thin at P7.40 billion. Market breadth, however, was negative with 97 gainers to 118 losers, while 47 issues were unchanged.

“The local market snapped its two-day win streak on profit-taking. Top drags were Ayala Corp. (down 3.2 percent), Ayala Land (down 1.6 percent) and JG Summit (down 2.3 percent),  accounting for 33 points of the total decline,”  AB Capital Securities said in a market commentary.

“Investors will monitor movements near the 7,000 mark, given improved turnover and resumption of net foreign buying.  Part of the support would come from G-7’s pledge to provide one billion extra COVID shots, in their bid to end the pandemic next year.  With this recent strength however, anticipate some players to cash out, especially those that bought shares when gauges were at its lowest.  Select non-index stocks may also be highlighted, especially those with good upside plays,” 2TradeAsia head Grace Cendena said.

She said immediate support for the PSEi is seen at 6,870, and resistance at 6,950 to 6,970.