Stocks drop after index fails to reach 7,000 level

Published June 17, 2021, 5:14 PM

by James A. Loyola

The local stock market fell after investors lacked conviction to take it above the 7,000 level.

The main index lost 85.43 points or 1.23 percent to close at 6,887.92 as share prices fell across the board led by the 2.56 percent drop of the Property counter.

Volume jumped to 3.29 billion shares worth P14.18 billion as losers beat gainers 129 to 76 with 41 unchanged.

“Philippine shares sold on news and ahead of the FTSE rebalancing tomorrow after the FOMC last night,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that, “Investors digested the U.S. Fed’s tone on the economic recovery. Powell also revealed the timing of interest rate hikes and a slightly hawkish policy update.“

AAA Equities Head of Research Chris Mangun said “The market took a step back with the PSEi ending with its biggest daily loss in the last 4 weeks.”

He noted that, “We were already seeing signs that the rally was losing momentum and today’s performance could potentially be the beginning of a much more substantial pullback.”

“Investors were willing to hold on to positions in the last few sessions as prices began to move sideways. The lack of upside price movement is causing impatience among some investors and as a result, they are beginning to unload,” Mangun explained.

He also said that “the International Monetary Fund (IMF) has just reduced its growth forecast for the PH economy from 6.9 percent to 5.4 percent for 2021 which may have also dampened the sentiment.”