October 27, 2020

Market and Financial News Aggregator

PSEi sinks to 5,900 level on Wall Street’s decline

2 min read

By Denise A. Valdez, Senior Reporter

THE LOCAL MARKET surrendered to profit takers on Wednesday, pulling the main index back to the 5,900 level, following the drop in Wall Street as it reopened on Tuesday.

The bellwether Philippine Stock Exchange index (PSEi) gave up 101.19 points or 1.67% to close at 5,932.84. The broader all shares index likewise lost 42.02 points or 1.16% to end at 3,562.56.

“The market ended lower as investors chose to take profits following the sell-off in the US markets last night,” Darren T. Pangan, a trader at Timson Securities, Inc., said in a text message on Wednesday.

US markets reopened on Tuesday after a long weekend in observance of the US Labor Day holiday on Monday. The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite indices declined 2.25%, 2.78% and 4.11%, respectively. Nasdaq, in particular, fell into correction territory.

The decline can be attributed to sustained worries over the coronavirus outbreak and growing tensions between US and China, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.

These worries were fanned further on news about issues in a coronavirus vaccine candidate on Wednesday. United Kingdom-based AstraZeneca Plc said it has suspended the late-stage trial of its vaccine development after finding “unexplained illness” in a participant of its tests, Reuters reported.

“Philippine shares fell as concerns arose regarding the progress on the development of one the vaccine candidates,” Mr. Limlingan said.

Nearly all Asian stocks were in red territory when the local market closed on Wednesday.

At home, all sectoral indices at the PSE likewise ended with losses. Property dropped 78.66 points or 2.82% to 2,709.49; financials lost 22.13 points or 1.89% to 1,149.00; mining and oil went down 77.98 points or 1.28% to 5,999.80; holding firms cut 74.12 points or 1.18% to 6,172.60; services shed 12.50 points or 0.83% to 1,478.72; and industrials dropped 62.21 points or 0.76% to 8,030.76 at the end of session.

Some 838.18 million issues valued at P5.1 billion issues switched hands on Wednesday, down from the previous day’s 1.19 billion issues worth P4.57 billion.

Decliners outpaced advancers, 118 against 73. Some 48 names ended unchanged.

Foreign investors were still sellers, but net outflows were reduced to P543.03 million from P647.32 million on Tuesday.

Timson Securities’ Mr. Pangan said the market may still move upwards for the rest of the week if the rise in local coronavirus cases would slow down. The Health Department reported 3,281 new cases on Tuesday, pushing the total to 241,987 confirmed cases.

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