Pandemic burnout sends PSEi back to 6,400 level

The stock barometer slipped back to the 6,400 level on Wednesday as investors grew weary of rising domestic COVID-19 cases.

The main-share Philippine Stock Exchange index (PSEi) fell by 61.03 points, or 0.94 percent, to close at 6,439.39, likewise tracking sluggish regional markets.

“The trading day started slow as prices moved sideways but selling pressure gradually picked up until the end of the session. There was a large sell-off right at the close, which pushed several blue chips as well as the main index to end at their lowest levels for the day,” said Christopher Mangun, head of research at AAA Equities.

“The increased selling pressure on blue chips may be a sign of frustration from investors due to the lack of concrete positive developments on the health crisis. We may see the main index bounce back in the next session as it is right at its 6,440 support,” he added.The market’s decline was led by the property counter, which lost 2.1 percent, while the holding firm counter fell by 1.02 percent.

The financial, industrial and mining/oil counters all slipped by less than 1 percent.

Only the services counter bucked the day’s downturn, rising by 0.85 percent.

Value turnover amounted to P5.37 billion. Foreigners continued to dump local equities, resulting in net foreign selling of P776.8 million.

Despite the PSEi’s decline, there were more advancers (108) than decliners (92) as investors scouted for buying opportunities outside the main index.

The market was dragged down by index heavyweight SM Prime, which tumbled by 4 percent, while JG Summit declined by 2.74 percent.

Investors also trimmed holdings in Ayala Land, SM Investments, BDO and LTG, which all declined by less than 1 percent. —DORIS DUMLAO-ABADILLA INQ