Stocks down as investors cash out for the weekend
The PSEI lost the previous day’s gains as it ended what has been a week of see-saw trading.
The main index shed 22.55 points or 0.30 percent to close at 7,251.97 as the Property sector led the retreat although the Banks and Industrial sectors posted strong gains. Volume jumped to 1.2 billion shares worth P8.01 billion as losers beat gainers 109 to 76 with 57 unchanged.
“Philippine shares slipped in another frenzied session as investors weighed the Fed's aggressive stance on raising interest rates against the latest GDP report from both here and the US, as well preparations ahead of corporate earnings,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
US GDP grew at a 6.9 percent annualized pace in the fourth quarter of 2021, higher than the consensus 5.5 percent and well above the unrevised 2.3 percent growth in the previous quarter despite a surge in COVID-19 Omicron cases that likely slowed hiring and output as businesses dealt with large numbers of sick workers.
Philstocks Financial Research and Engagement Officer Claire Alviar said “The local bourse declined as investors booked gains on the last trading day of the week while waiting for the government's announcement of the quarantine measures for February.”
She noted that, “Although the Covid-19 situation at home is improving, the easing of restrictions to Alert level 2 from level 3 may only happen in the mid-week of February.”
“The market is expected to move sideways in the coming days if the government will extend the current restrictions while investors wait for further catalysts,” Alviar added.