THE MAIN INDEX marked its third straight day of decline on Wednesday as the market was taken over by profit taking.

The benchmark Philippine Stock Exchange index (PSEi) shed 18.50 points or 0.33% to close at 5,573.75 yesterday, while the broader all shares index slid 1.57 point or 0.04% to 3,388.17.

“We saw heavy selling again at the open today which caused the PSEi to open much lower,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail on Wednesday.

The main index opened at 5,517.67 before trimming its losses throughout the trading session, reaching a high of 5,577.91 before settling at 5,573.75 at the close.

“After two days of consecutive losses, investors took a chance at current prices. It ended the day above the 5,500 support level and may start moving higher toward the end of the week,” Mr. Mangun said.

For Philstocks Financial, Inc. Research Associate Claire T. Alviar, the activity of investors yesterday was also driven by uncertainties on the extension of the enhanced community quarantine (ECQ) over Luzon.

“The local bourse…(ended) at the red territory as investors awaited the government’s decision whether to lift or to extend the enhanced community quarantine. It was evident on lower value flows today at P5.07 billion, compared with year-to-date average of P6.5 billion,” she said in a text message.

President Rodrigo R. Duterte is expected to make an announcement this week if the ECQ will be lifted or extended after its April 30 deadline. State leaders and experts have met on Monday to discuss options on how to balance containing the virus and kickstarting the recovery of the economy.

“Some investors were undecided on whether to pick up already or sell their position by now since this lockdown is still uncertain when to be lifted,” Ms. Alviar said.

Yesterday’s trading volume stood at 600.52 million issues valued at P5.07 million, down from Tuesday’s 764.34 issues worth P5.66 billion.

Sectoral indices were led by decliners: mining and oil dropped 88.48 points or 1.90% to 4,554.32; property lost 47.26 points or 1.65% to 2,813.66; holding firms trimmed 40.93 points or 0.73% to 5,510.91; and financials slipped 5.74 points or 0.48% to 1,189.60.

The only gainers were services, which added 28.36 points or 2.23% to 1,295.33; and industrials, which picked up 22.22 points or 0.30% to 7,277.63.

“[W]orries on oil prices were still on the table, despite the government’s comment that we are one of the net beneficiaries of it, because of dismal oil demand outlook. While BSP’s (Bangko Sentral ng Pilipinas’) tentative Philippine growth forecast between -1% and 0% dragged investors’ sentiment further,” Ms. Alviar said.

Decliners beat advancers, 101 against 67, while 54 names ended unchanged. Net foreign selling stood at P236.22 million, lower than Tuesday’s P763.35 million. — Denise A. Valdez

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