Stocks end lower as investors remain on the sidelines

MANILA, Philippines — Stocks closed lower for a second day yesterday, bucking the uptrend in most Asian markets, as pandemic and economic worries continued to cloud investors’ sentiment while catalysts remained missing.

The benchmark Philippine Stock Exchange index (PSEi) finished at 6,415.53, down 23.86 points or 0.37 percent while the broader All Shares index plunged 16.93 points or 0.42 percent to end at 3,947.41.

Total value turnover reached P5.651 billion. Market breadth, however, was negative with 71 advancers to 127 decliners, while 46 issues were unchanged.

“Foreigners were still net sellers with net outflows amounting to P1.12 billion, contributing to the market’s decline. Trading improved with net value turnover increasing to P5.65 billion from the preceding day’s P4.92 billion. Still, this was below the year-to-date average of P8.83 billion, showing that many investors are still staying on the sidelines amid the elevated risks,” Japhet Tantiangco of Philstocks Financials said.

According to AB Capital Securities, the local market fell as much as 65 points but market-on-close buying pushed the index back to the 6,400 mark.

Around Asia, most bourses rose yesterday, extending a rebound in global markets following a sharp selloff earlier this week, while oil prices eased again on worries that rising COVID-19 cases in some countries will dampen fuel demand.

Oil prices slipped for a third day on concerns that surging COVID-19 cases in India will drive down fuel demand in the world’s third-biggest oil importer, while a surprise build in US stockpiles added to the negative tone.

“Overall, I think markets are still skewed to taking on risk, and I don’t think we’ve seen the final record high by any means in the US stock market or in global equities,” said Kyle Rodda, a market analyst at IG in Melbourne.