Lack of positive catalysts hounds equities market

MANILA, Philippines — The absence of market-moving catalysts continues to hound the stock market, with the main index further dropping below the 6,000 level.

The benchmark Philippine Stock Exchange index or PSEi closed at 5,921.55 points, down 9.78 points or 0.16 percent. On the other hand, the broader All Shares index gained 0.17 points or 0.005 percent to finish at 3,544.41.

The sectoral gauges were a mixed bag, with the holding firms, services, property and industrial indexes ending in the red. Mining and oil and the financial sector, on the other hand, rallied.

Total value turnover reached P17.45 billion. Market breadth was positive, 98 to 86, while 57 issues were unchanged.

Traders said investor confidence remained weak amid the absence of positive news.

“Yesterday’s sideways movement ended in red as pandemic and economic woes continued to weigh on investor sentiment. The PSEi closed at 5,921.55, down by 9.78 points. The 6.8 percent year-on-year decline in first seven-month government revenues and the downwardly revised revenue collection target from the Bureau of Internal Revenue and Bureau of Customs for the whole year gave signs of the general economy’s weakness and its challenged outlook,” Japhet Louise Tantiangco, senior research analyst at Philstocks Financials, said.

Foreign investors, meanwhile, continued to dump their shareholdings.

“Net foreign outflows also continue to build up, adding to the market’s downside. So far, we’re already on an eight-day net foreign selling streak with yesterday’s net outflows amounting to P1.1 billion,” Tantiangco said.