Stocks fall further; investors seek opportunities overseas
The local stock market dropped further as investors seek better opportunities in countries that are better at handling the pandemic.
The PSEi shed 23.86 points or 0.37 percent to close at 6,415.53 as all sub-indices fell across the board.
Volume remained anemic at 3.66 billion shares worth P5.65 billion as losers beat gainers 127 to 71 with 46 unchanged.
“Philippine shares succumbed to profit taking as investors piled into regional equities most sensitive to an economic recovery,” said Regina Capital Development Corporation Managing Director Luis Limlingan
He added that, “earnings season for first quarter for 2021 is coming underway as index heavyweight BPI reported net income, which may serve as a prelude to the rest of the companies reporting in the coming weeks.”
Philstocks Financial Senior Analyst Japhet Tantiangco said “The local bourse extended its decline as pandemic and economic worries continued to cloud investors’ sentiment while catalysts remain missing.”
He noted that, “Foreigners were still net sellers, contributing to the market’s decline” and that the low trading volume showsthat many investors are still staying on the sidelines amid the elevated risks.
AAA Equities Head of Research Chris Mangun said “The market declined further as large-cap blue chips saw increased selling pressure. Some investors are beginning to unload equities and reduce risks on renewed expectations of a slower economic recovery due to the dire public health situation”
However, Mangun said “Last-minute buying allowed prices to recover some of its losses for the day.”