PSEi makes U-turn, finishes in the red

MANILA, Philippines — Stocks reversed early gains in an erratic session yesterday, closing in the red as investors cashed in from the market’s recent advance.

The benchmark Philippine Stock Exchange index (PSEi) closed 29.28 points or 0.42 percent lower at 6,923.60 while the broader All Shares index was practically flat, up a mere 0.67 point or 0.01 percent at  4,326.51.

Net value turnover reached P6.27 billion. Market breadth was positive, 103 to 86, while 53 issues were unchanged.

2TradeAsia said it was another erratic session and a test of the 7,000 zone, which the PSEi failed to reach.

“The market was also weighed by expectations of a higher inflation print for September compared to the preceding month,” Philstocks Financial analyst Japhet Tantiangco said.

With a new surge of COVID-19 raging across Southeast Asia and threatening the region’s economic recovery, investors will focus next week on inflation readings from several countries including Japan, Thailand and the Philippines.

World markets tumbled yesterday on the tail of Wall Street’s worst monthly loss since the beginning of the pandemic.

The S&P 500 ended September down 4.8 percent, its first monthly drop since January and the biggest since March 2020.

After climbing steadily for much of the year, markets have become unsettled with the spread of the more contagious Delta variant of COVID-19, surging long-term bond yields and word that the US Federal Reserve may start to unwind its support for the economy.

Rising inflation also has caused investors to reconsider recent high prices for shares, leading many to sell tech stocks that have soared during the pandemic.