Stocks continue to drop

Published May 6, 2021, 4:25 PM

by James A. Loyola

The Philippine stock market continued to tread lower as investors remain wary of the COVID situation in the country.

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The main index dropped 16.91 points or 0.27 percent to close at 6,282.78 with blue chip Holding Firms leading the slide while Property stock headed advancers.

Volume improved to 13.84 billion shares worth P5.28 billion as losers beat gainers 126 to 77 with 44 steady.

“Local shares continued to slide as momentum continued to shift to the US as strong earnings results and economic optimism pushed the Dow to record highs,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that, “funds continued to assess which companies are performing well for the quarter, with recent releases such as TEL, ICT all reporting, while other big names will be released in the coming days.”

Philstocks Financial Senior Analyst Japhet Tantiangco said “The local bourse extended its decline this Thursday. The market has already been falling for 5-straight days with losses amounting to 204.73 points (-3.16 percent), reflecting the diminishing confidence of investors towards the local economy.”

He explained that, “This comes as it struggles to recover due to the surge in COVID-19 cases and the strict quarantine measures in the NCR Plus.“

AAA Equities Head of Research Chris Mangun said “The market ended lower despite starting the day with some gains, as it could not sustain the early upside momentum.”

He noted that, “The PSEi’s losses were led by large-cap blue chip holding firms SM and AC… On the other hand, several property issues  saw significant gains which tells us this may be a rotation from  stronger issues to the ones that have been consistently battered.“

“Reports of additional doses of the AstraZeneca vaccine and the arrival of Pfizer vaccines this month, which almost doubles the expected number that will arrive in May, failed to generate optimism among investors. Skepticism is the prevailing sentiment as most would prefer to wait for actual results rather than speculate on potential positive developments, Mangun noted.