Stocks back in red on thin trades, lack of catalysts

MANILA, Philippines — Stocks waddled back in the red yesterday, erasing gains made in the previous day, as the low trading volume and lack of catalysts kept investors on the sidelines.

The Philippine Stock Exchange index (PSEi) plunged back to the 6,700 level, losing 107.48 points or 1.57 percent to 6,727.93, while the broader All Shares index tumbled 44.46 points or 1.05 percent to 4,183.02.

PhilStocks Financial analyst Japhet Tantiangco said selling pressure dominated trades amid the lack of a positive catalyst.

“Investors also took a cautious stance ahead of the government’s decision on the quarantine measures of the country after July 15,” he said.

Total value turnover was thin at P4.89 billion. Decliners outnumbered advancers, 121 to 70, while 57 issues were unchanged. Net foreign selling persisted for the nine straight session with P551 million.

In a report, online portal Trading Economics said the PSEi closed at a near 1-1/2-month low amid mounting worries over the local coronavirus situation.

Malacañang said the Philippines is once again extending a travel ban to keep out the Delta COVID-19 variant. The travel ban, which ended yesterday, would stay in place until July 31.

News that China’s GDP growth in Q2 slowed more than estimated also rattled sentiment, along with reports that producer prices for final demand in the US rose 7.3 percent year-on-year in June, the most since the current series began in November 2010.