PSEi declines on lack of buying interest
The local stock barometer slipped in thin volume on Tuesday as investors worried that the government may extend lockdown restrictions as daily new COVID-19 cases remained alarmingly high.
The main-share Philippine Stock Exchange index (PSEi) shed 32.91 points, or 0.52 percent, to close at 6,356.47, in line with mostly sluggish regional markets.
The Department of Health had proposed to extend strict quarantine restrictions for a week or two, especially as local hospitals remained overwhelmed by a surge in new cases of COVID-19.
“The PSEi slid lower on declining trading volumes and a lack of buying at current prices. Selling pressure did not pick up significantly, which is why losses are minimal, but the lack of interest from buyers due to the uncertainty on the economy’s recovery, is the reason why prices keep going lower,” said Christopher Mangun, head of research at AAA Equities.Mangun sees support level at 6,325, adding it may head even lower towards its stronger support of 6,170.
The market was weighed down most by the property counter, which fell by 1 percent.
The financial, industrial, holding firm and services counter all slipped by less than 1 percent.
On the other hand, the mining/oil counter added 1.43 percent.
Value turnover was thin at P4.61 billion. Foreign investors continued to dump local equities, resulting in a net foreign selling of P652.51 million.
There were 119 decliners that outnumbered 83 advancers, while 51 stocks were unchanged.
Aboitiz Power and Megaworld both fell by over 2 percent.
