The local stock market started the week in the negative as investors cash out prior to the government’s decision on whether to loosen lockdown measures.
The main index fell 116.07 points or 1.68 percent to close at 6,810.34 with only the Mining and Oil counter advancing.
Volume fell to 16.43 billion shares worth P8.5 billion as losers beat gainers 119 to 96 with 44 unchanged.
“Local shares closed lower as increasing bond yields led to the reversal of market gains, while other investors are closely monitoring whether the country will transition to MGCQ in March,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
Philstocks Financial Senior Analyst Japhet Tantiangco said “The local market declined as investors chose to take a cautious stance as the possibility of keeping GCQ in some areas of the country remains amid the continuous rise in COVID-19 cases together with threats coming from the UK variant’s spread and even new mutations.”
He added that, “Foreign funds also continued to exit the country amid the rising bond yields in the US and the depreciation of the local currency.”
AAA Equities Head of Research Chris Mangun said “The PSEi continued lower led by losses in large-cap holding firms. Investors continue to unload positions after favoring these holding companies for months due to their diversified portfolios.”
He added that, “We may see investors begin to take positions in specific industries now that the economy is recovering. We may see the main index test support at 6,740 before it recovers. The general sentiment remains cautious due to the economy’s slower than expected recovery.”