PSE index falls back to 7,300 level
THE main index returned to red territory on Friday, dropping to the 7,300 level on the back of a technical pullback.
The 30-member Philippine Stock Exchange index (PSEi) fell by 43.22 points or 0.58% to 7,369.78, as the broader all shares index dropped 29.11 points or 0.66% to 4,346.76 at the close.
“The local market had a technical pullback to fill yesterday’s gap, following the performances of the overnight markets while COVID-19 (coronavirus disease 2019) concerns persist,” Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a text message Friday.
She added that Thursday’s report on more hot money leaving Philippine markets last month affected investor sentiment during Friday’s trading.
“January’s hot money net outflow weighed on investors’ sentiment knowing that majority of market participants are foreigners,” Ms. Alviar said.
Bangko Sentral ng Pilipinas reported on Thursday that foreign portfolio investments last month recorded a net outflow of $486.1 million, amid geopolitical uncertainties, regulatory risks and COVID-19 worries.
“While during intraday, PSEi was able to visit positive territory as foreign investment pledges in 2019 hit record high, lifting investors sentiment,…it didn’t stay at that level due to the fears over the impact of COVID-19 and current regulatory risks in the country,” Ms. Alviar said.
Most sectoral indices at the PSE declined on Friday. Services gave up 24.87 points or 1.69% to 1,444.81; property lost 38.20 points or 0.96% to 3,944.75; industrial fell 65.99 points or 0.73% to 8,987.08; financials shed 12.49 points or 0.71% to 1,738.92; and mining and oil shaved off 22.24 points or 0.31% to 7,086.90.
The sole gainer was holding firms, which increased 7.28 points or 0.10% to 7,218.98.
Value turnover on Friday stood at P5.2 billion with 695.75 million issues switching hands, slightly lower from Thursday’s P5.79 billion with 1.86 billion issues.
Decliners outnumbered advancers at the close, 104 against 76, with 51 names ending unchanged.
Net foreign outflows increased to P627.64 million from Thursday’s P533.02 million. — Denise A. Valdez
