Stocks fall on renewed COVID-19 fears

Published January 26, 2021, 4:33 PM

by James A. Loyola

Local share prices fell on renewed concern over the possibility of imposition of greater restrictions in light of the growing number of new COVID-19 cases.

The PSEi dropped 94.34 points or 1.33 percent to close at 6,977.16 as all sectors retreated.

Volume was higher at 74.53 billion shares worth P11.56 billion as decliners swamped gainers 209 to 29 with 31 unchanged.

“The market closed below the 7,000 psychological support level amid stricter lockdown measure worries after the mounting cases of a new Covid-19 variant in the provinces,” said Philstocks Financial Research Analyst Claire Alviar.

She added that, the local transmission of the new COVID-19 variant worried investors, forcing them to unload shares.

Regina Capital Development Corporation Managing Director Luis Limlingan said stocks fell also because “many are anxious over the the new US fiscal aid to be tackled this week’s Fiscal Reserve’s meeting.”

He added that, “Wall Street is also gearing up for the heart of corporate earnings seasons, which will kick start later tonight.”

AAA Equities Head of Research Chris Mangun said “The PSEi’s recovery yesterday was short lived as it continued lower today. Selling pressure picked up even further which drove buyers away.”

He noted that, “The main index ended below the psychological support of 7,000 which may trigger more selling in the coming days. The lack of optimism from investors may be coming from the lack of positive news from companies with regards to their fourth quarter performances.“ “The bloodbath continued for second and third liners as investors are now unloading positions at a massive scale,” Mangun added.(JAL)