The local stock market continued to correct yesterday as investors take profit from the surge in prices last week.
The Philippine Stock Exchange index (PSEi) dropped 51.83 points, or 0.74 percent, to close at 6,918.05 with only the Financials and Industrial counters managing to advance.
Volume was lower at 2.36 billion shares worth P8.77 billion with gainers actually edging out losers 119 to 109 with 30 unchanged.
“The PSEi ended lower today as selling pressure picked up, which was to be expected after that massive rally that we saw at the end of last week. Investors are taking profits while prices remain at their 8-month highs,” said AAA Equities Head of Research Chris Mangun.
He noted that, “Losses were trimmed before the end of the trading session on last-minute buying. This pullback is extremely beneficial for the market's uptrend as it relieves pressure...Investors are still confident in our market evident in the above average trading volumes that we are seeing.”
Regina Capital Development Corporation Managing Director Luis Limlingan said “Philippines shares slumped on fears that rising coronavirus infections may slow the recovery in the global economy and fuel demand.”
He added that, “increasing coronavirus infections globally re-ignited concerns about the economic toll from the pandemic,” while some investors shifted to gold due to skepticism over the reach of a potential COVID-19 vaccine.