Stocks weaken as investors take profit
The local stock market declined as investors continue pocketing gains following the previous day’s spike.
The main index dropped 46.68 points or 0.64 percent to close at 7,258.11 with all sectors retreating.
Volume dipped to 41.52 billion shares worth P9.74 billion as losers beat gainers 144 to 86 with 40 unchanged.
“Local shares closed lower once again amid valuation concerns and the outlook for more COVID-19 relief stimulus, along with ongoing political turmoil in the US,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
Philstocks Financial Research Analyst Claire Alviar said “The local bourse declined amid profit taking, following the performances of the US market overnight. Technical-wise, the PSEi is trading near the psychological resistance of 7,300 which triggered the profit taking after three consecutive days of gains.”
She added that, “Also, we don't see fresh catalyst that could help the market to breakout from its current resistance level.”
Alviar also noted that, “Negative sentiment was further dragged by the warning of Fitch that a delay in the Covid-19 vaccine rollout may hurt the growth prospects of the Philippines.”
AAA Equities Head of Research Chris Mangun said “The PSEi ended lower as the sentiment continues to grow increasingly cautious. It failed to stay above the 7,300 level, further confirming how strong the resistance level is.”
While there was temporary optimism at the beginning of the year, Mangun said the uncertainty of what is going to happen with the global economy is spooking investors.”