Stocks drop for 4th day

Published January 20, 2021, 4:00 PM

by James A. Loyola

The local stock market continued to drop although trading volume remained high.

The PSEi lost 55.15 points or 0.77 percent to close at 7,143.30 with only the Services sector posting gains.

Volume was a hefty 121 billion shares worth  P13.1 billion with losers beating gainers 137 to 91 with 40 stocks jolding steady.

“Blue chip shares were sold down again as investors went for riskier assets in the anticipation of fast vaccine distribution and another round of fiscal aid in the US,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

Philstocks Financial Senior Analyst Japhet Tantiangco said “The local bourse extended its decline to a fourth straight day as investors continued to book gains amid the lack of a catalyst. Pandemic worries also continued to weigh on sentiment.”

AAA Equities Head of Research Chris Mangun said “The PSEi continued lower as investors turned more cautious resulting in a pick up of selling pressure.  Ayala-led blue chips AC, ALI and BPI took the biggest losses and dragged the whole index lower.”

He noted that, “Last-minute buying allowed the main index to recover most of its losses in early trading.”

“Investors are now wondering whether they jumped the gun with regards to the rally that we saw at the end of last year,” Mangun added.