Stocks dip as investors turn reluctant to take risks

The local stock barometer started the week in the red as heightened risk aversion curbed all markets across the region.

The Philippine Stock Exchange index (PSEi) shed 24.21 points, or 0.35 percent, to close at 6,827.17.

“The market started the week with losses on increased selling pressure amid elevated new COVID-19 cases although our market did much better than its Asian peers, which suffered serious losses, similar to what happened to US equity markets last Friday,” said Christopher Mangun, head of research at AAA Equities.

“The less dovish tone of the US Federal Reserve in its meeting last week has apparently caught investors by surprise and triggered a sell-off in global equities,” he said. The Fed signaled to hike rates as early as 2023.

All eyes are now focused on the Bangko Sentral ng Pilipinas (BSP)’s monetary setting this week.

Supportive policies

Mangun believes, however, that the BSP would continue with its supportive policies at least until the end of the year.

On the main index, Mangun said the market was beginning to see the strength of the resistance levels between 6,950 and 7,000.

“The pullback may continue until it can draw more buyers in at lower prices, building momentum for a stronger move higher,” he said.

The local market was weighed down most by the holding firm and mining/oil counters, which both lost over 1 percent.

The financial, industrial and services counters all shed less than 1 percent.

On the other hand, the property counter added 1.18 percent.

Value turnover amounted to P5.86 billion. There was a modest net foreign buying of P238.45 million.

There were 138 decliners that overwhelmed 64 advancers, while 50 stocks were unchanged.

JG Summit fell by 3.98 percent, while Security Bank and Puregold both lost over 2 percent.

ICTSI, Metro Pacific, SM Investments and Megaworld all slipped by over 1 percent.

BPI and Ayala Corp. both declined by less than 1 percent.

Notable decliners outside the PSEi included Ever, which pulled back by 27.94 percent after a steep ascent in recent days.

Converge declined by 2.25 percent.

Meanwhile, SM Prime, BDO, Ayala Land and PLDT all added over 1 percent. Jollibee and Globe Telecom gained over 1 percent.

One notable gainer outside the PSEi was PHES, which surged by 22 percent. The company plans to raise as much as P1.44 billion from a stock rights offering. —DORIS DUMLAO-ABADILLA INQ