Stocks partially recover from bargain-hunting
The local stock market closed slightly lower after bargain hunters bought up shares late in the session.
The main index shed 5.88 points or 0.08 percent to close at 7,085.52 although only the Holding Firms counter managed to advance while the Services sector led the retreat.
Volume dipped to 771 million shares worth P5.21 billion as losers were double the number of gainers at 114 to 57 with 59 unchanged.
“Philippine shares traded lower for most of the session before being bought up at close as investors continued to welcome the deceleration in inflation, while other investors digested the recently published minutes from the Fed's (US Federal Reserve) meeting that revealed the central bank discussed a possible run-off shortly after implementing rate hikes later this year,” said Regina Capital Development Corp. Managing Director, Luis Limlingan.
As for Philstocks Financial Senior Supervisor for Research, Japhet Tantiangco, he said that, “Intra-day, the market dropped to as low as 7,008.07 as COVID-19 fears weighed on sentiment amid the surge of infections with Wednesday posting 10,775 new cases.”
He added that the “surge of cases raises the possibility of our country being subjected to tighter social restrictions again which would be a drag to our economic recovery.”
Tantiangco also noted that, “The negative cues from Wall Street brought by the hawkish tone of the Federal Reserve in their latest minutes of the meeting also contributed to the decline.”
AB Capital Securities said though that, “the index respected the psychological support at 7,000 for the second day in a row as investors continue to hunt for bargains.”