Stocks retreat after 3-day rally

Published December 15, 2020, 4:33 PM

by James A. Loyola

The local stock market gave way to some profit-taking as investors continue to bet on how soon the new vaccines can boost recovery.

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The main index dropped 53.62 points or 0.74 percent to close at 7,227.73 with only the Financials sector managing to hold its ground.

Volume rose to 63.91 billion shares worth P10.13 billion as losers finally overcame gainers 128 to 95 with 49 unchanged.

“Philippine shares closed mostly lower as investors weighed stimulus progress and vaccine distribution against dire new restrictions,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that, “The progress of the vaccine rollout news drove skepticism in wider financial markets, with investors making assumptions on a resultant economic recovery.”

Philstocks Financial Senior Analyst Japhet Tantiangco said “The local market pulled back as investors booked gains from its 3-day rally. The negative sentiment caused by the surging COVID-19 cases around the world and the reimposition of strict lockdowns primarily in the US and in England have also contributed to Tuesday’s decline.”

AAA Equities Head of Research Chris Mangun said “The market is generally moving sideways right before the holidays, which is what we expected as investors monitor the economy’s recovery till the end of the year.”

He noted that, “There are a few concerns that remain, mainly the potential spike in new cases as families get together for the Christmas holidays.” (JAL)