Shares slip on profit taking; curfew seen to hit sentiment

The stock market slid back to the 6,000 territory on Wednesday after investors decided to cash in.

The bellwether Philippine Stock Exchange index (PSEi) lost 1.86 percent or 114.33 points to close at its intraday low of 6,042.12, while the wider All Shares shed 1.22 percent or 44.42 points to finish at 3,591.36.

AAA Equities Head of Research Christopher Mangun said the main index ended lower as cautious investors decided to take profits.

The unified 8 p.m.-to-5 a.m. curfew to be implemented in Metro Manila could also affect sentiment, he added, as “current conditions are more restrictive than before the imposition of [the] MECQ (modified enhanced community quarantine).”

The property index ended with the biggest loss on Wednesday, as SM Prime Holdings Inc. and Ayala Land Inc. both fell by more than 3 percent, according to him.

The sector lost the most at 2.54 percent, while the services index was the sole gainer with 0.7 percent.

Philstocks Financial Inc. research analyst Piper Chaucer Tan agreed with Mangun, noting that it was more on the consolidation of the 6,000-to-6,300 range as investors await new catalysts.

Continuing tensions between the United States and China could also affect investor sentiment, he said.

Wall Street rallied overnight, with the S&P 500 and Nasdaq adding 0.23 percent and 0.73
percent, respectively. The Dow Jones slipped by 0.24 percent.

Most Asian markets also closed lower. Shanghai lost 1.24 percent, Hong Kong was down by 0.7 percent, Jakarta shed 0.4 percent, Singapore slipped by 0.05 percent and Bangkok declined by 0.55 percent. Tokyo inched up by 0.26 percent, Seoul added 0.52 percent and Ho Chi Minh climbed by 0.56 percent.

Total volume turnover was at 1.36 billion shares, valued at P5.47 billion.

Losers edged out winners, 95 to 92, while 42 securities were unchanged.

Source: TheManila Times