PSEi declines on profit-taking, ending 4-day winning streak

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The Philippine Stock Exchange — PHOTO BY SANTIAGO J. ARNAIZ

SHARE prices closed lower on profit-taking, interrupting a four day rally that had been buoyed by positive sentiment about upcoming vaccines for coronavirus, including the first government-approved one from Russia.

The bellwether Philippine Stock Exchange index (PSEi) fell 20.87 points or 0.34% to 6,076.91 while the broader all-shares index rose 4.45 points or 0.12% to 3,596.19.

In a mobile phone message, Philstocks Financial, Inc. Research Associate Claire T. Alviar said the market has been feeding off the positive sentiment generated by Russia’s announcement of a vaccine for COVID-19.

“(With) COVID-19 cases mounting, uncertainty remains, triggering investors to take profit for now,” Ms. Alviar said.

Earlier this week, Russian President Vladimir Putin announced that Russia was the first country to approve a vaccine against COVID-19, named Sputnik V.

The President’s Spokesman Herminio L. Roque said Thursday that the Philippines and Russia plan to conduct phase 3 clinical trials of the vaccine between October and March, with approval from the Food and Drug Administration (FDA) projected by April 2021.

Timson Securities, Inc. Head of Online Trading and Trader Darren Blaine T. Pangan said Friday’s market result also represented profit-taking ahead of a meeting between US and China trade officials.

“The market ended with a slight loss as investors also felt uncertain about the US stimulus plans,” Mr. Pangan said in a mobile phone message.

On Saturday, the two countries will discuss the “phase one” trade deal signed earlier this year, which provided a respite to their trade war. Part of the deal between the two countries was China’s commitment to purchase an additional $200 billion in US goods and services.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said the trade tensions had kept investors at bay.

“China hopes that the US will create conditions for implementation of the Phase 1 trade deal,” Mr. Limlingan said in a mobile phone message.

Most of the sectoral indices improved on Friday except for holding firms which declined 43.08 points or 0.68% to 6,245.02 and services, which retreated 14.26 points or 0.98% to 1,439.73.

Mining and oil rose 99.02 points or 1.71% to 5,869.24; industrials were up 11.94 points or 0.15% at 7,956.09; financials gained 5.45 points or 0.47% to 1,161.92; and property increased 1.06 points or 0.03% to 2,945.49.

Decliners outnumbered advancers 97 to 88, while 56 ended unchanged.

Trading value was P9.46 billion with 6.80 billion shares changing hands, against Thursday’s P17.15 billion on volume of 1.35 billion shares.

Net foreign selling amounted to P516.25 million, against P3.74 billion Thursday.

“The market managed to end the week above the 6,000 area, but we’ll have to see next week if the index stabilizes above this level,” Timson’s Mr. Pangan said. — Revin Mikhael D. Ochave