The local stock market started the week on the downside as investors stay away because the COVID situation remains unchecked.
The main index dropped 35.05 points or 0.54 percent to close at 6,459.76 although the Mining sector continued to rise while banks held their ground.
Volume weakened to. 6.26 billion shares worth P4.89 billion as losers beat gainers 119 to 81 with 47 unchanged.
“Philippine shares closed in the red as investors continued to pile up stock in the US following the country's strong earnings from the blue chips and sound economic data, supporting economic recovery,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “Worldwide the cases are being monitored. Case growth flattened in the UK and Italy, increased in France, and edged up in Spain and Germany. Hospitalization and ICU levels remain elevated in France and Italy.”
Philstocks Financial Senior Analyst Japhet Tantiangco said “The lack of catalysts amid lingering pandemic worries sent the local market lower. The surge in our country’s COVID-19 cases remains unabated, in turn weighing on our economic outlook, while factors that could spur investor optimism are yet to be seen.”
He noted that, “Trading remained anemic with net value turnover registering below the year-to-date average of P8.98 billion as many investors still choose to stay on the sidelines amid elevated risks.”
AAA Equities Head of Research Chris Mangun said “The PSEi ended slightly lower on below average trading.”
He said “It was a slow start to the week as a lack of good news regarding the public health situation has resulted in slightly higher selling pressure coupled with the lack of buying, which resulted in the main index ending at its lowest level for the day.”