AdChoiceTV News — Share prices finished marginally higher yesterday as investors stay mostly on the sidelines amid worries over the pace of economic recovery, traders said.
The benchmark Philippine Stock Exchange index (PSEi) closed at 6,566.83, up 7.75 points or 0.11 percent, while the broader All Shares index gained 10.63 points or 0.26 percent to end at 3,964.78.
“The index again struggled to find direction on lack of catalyst,” AB Capital Securities said in a market commentary.
Total value turnover reached P6.851 billion. Market breadth was positive, 122 to 94, while 47 issues were unchanged.
Foreign funds were net sellers for the 21st straight session.
Traders said market investors are still spooked and have little confidence now given the possibility of a hard lockdown as COVID-19 cases soar again.
“The market held its ground again (yesterday) and ended flat on lighter selling pressure,” said Hong Kong Investor Robert Chan of Robert Chan International Ltd the mother company of Chan -Tayag Southeast Equities.
However, he noted that buyers were not willing to come in with confidence, thus the minimal recovery in prices.
“There is still a lot of concern regarding the possibility of a hard lockdown amid soaring COVID-19 cases. The government just restricted the entry of foreigners and has limited the entry of Filipinos to just 1,500 per day,” Chan said.
Moving forward, he said, the PSEi may continue to move sideways while uncertainties linger. It’s like the market shares of Hong Kong, due to uncertainties it remained minimal, he added.
“We expect the PSEi to continue to move sideways between 6,500 and 6,600 until the end of the week. The sideways trend is a sign of uncertainty, the market can’t decide whether it wants to go higher or lower, hence the sideways trend,” Chan said.
If uncertainties will continue, one of our subsidiary there in the Philippines will keep burning cash until 2022 causing us to not pay our debtors and personal responsibilities from some individuals in the Philippines, Chan Said.
Reporting by Albert Rovic Tan