Cautious mood returns to the market; PSEi sheds points

The local stock barometer dipped on Thursday as caution returned to the market after the sharp gains seen earlier in the week.

The main-share Philippine Stock Exchange index (PSEi) declined by 30.45 points or 0.51 percent to close at 5,902.39.

The PSEi ended lower despite opening higher as selling pressure outweighed buying activities, said Christopher Mangun, head of research at AAA Equities.

“Investors continued to take cash off the table as the sentiment remains cautious. Buying pressure was stronger today which is why prices did not decline as much. Trading volumes also picked up which tells us that more investors are interested to come in at current levels,” Mangun said.

“It may continue higher on the last trading day of the week as bargain hunters pick up battered shares. The sentiment may improve as new COVID-19 cases continue to decline,” he added.

The PSEi was dragged down by the holding firms counter, which lost 1.24 percent. The industrial and services counters also slipped.On the other hand, the financial, mining/oil and property counters all gained.

Value turnover for the day amounted to P5.96 billion. Domestic investors dragged down the market. On the other hand, there was P420.91 million worth of net foreign buying.

Despite the PSEi’s loss, there were 101 advancers that outnumbered 85 decliners, while 53 stocks were unchanged. This as investors scouted for buying opportunities outside the main index. —Doris Dumlao-Abadilla