PSEi ends flat in year’s last trades

MANILA, Philippines — The local stock market finished 2022 flat as investors opted to stay in the sidelines on the last trading day of the year.

The Philippine Stock Exchange Composite index (PSEi) closed yesterday at 6,566.39, down by a mere 0.15 point or 0.002 percent.

The broader All Share index, on the other hand, ended in the opposite direction, but adding just 12.71 points or 0.37 percent to settle at 3,462.04.

Still, the main index lost 556.24 points or nearly eight percent for the year as it wrapped up 2021 at 7,122.63.

Stock portal 2TradeAsia said eyes were set on the PSEi’s year-end closing, as market participants balance the odds, wherein part of the support could be derived from expectations for 2022 GDP target to move past the upper end of the finance department’s goal, versus slower GDP expansion next year.

“Philippine shares were able to remain flat despite the broad selloff in the US, as recession fears weighed on investor sentiment in a losing week, month and year,” Luis Limlingan of Regina Capital said.

“With 2022 in the books, investors started the last chance for window dressing,” he added.

Value turnover nearly doubled to P6.17 billion from the previous day’s P3.7 billion.

Market breadth remained positive as advancers crushed decliners, 120 to 68, while 49 issues were unchanged.

Trading at the PSE will resume on Jan. 3.

In other Asian markets, a surge in COVID-19 cases in China drove stocks lower on worries over a recovery in the world’s second largest economy.

Beijing had announced earlier this week that it will relax its inbound quarantine restrictions from Jan. 8, which had initially cheered markets, but a spike in COVID cases has dampened the mood.

China’s health system has been under stress since it started dismantling its zero-COVID regime, while some countries now require passengers arriving from China to be tested for the coronavirus.

With low volumes across the board, investors will look out for more cues at the start of 2023, with focus on the December meeting minutes from the US Federal Reserve due next week and more economic data, to gauge the trajectory of global central bank policies and global economic growth.