Philippine share prices retreated after US markets opened the year in the red on concerns over COVID-19 and the run-off elections in Georgia.
The main index lost 63.32 points or 0.88 percent to close at 7,134.18 with only the Industrial counter holding its ground.
Volume increased to 30.76 billion shares worth P11.34 billion with losers beating gainers 133 to 87 with 43 remaining steady.
“The PSEi struggled as investors took profit after major US indices hit record high on the last trading day of 2020,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He said negative news triggering the sell-off included the additional movement restriction and more potent virus strain, Sino-US Tension escalation following alleged Chinese firms' military ties, Georgia senate race leaning towards a Democrat win, stalemate among OPEC+ members, and the continued rise in Philippine inflation.
AAA Equities Head of Research Chris Mangun said “The PSEi gave back all its gains from the day before as selling pressure picked up. There was a rush to sell blue chips right at the open as investors took cues from the performance of U.S. markets as well as its Asian peers.“
Philstocks Financial Senior Analyst Japhet Tantiangco said the PSEi also dropped because the December reading of the Philippines’ IHS Markit manufacturing purchasing managers’ index of 49.2, signifying contraction, weighed on investor sentiment.
