STOCKS fell on Monday as investors pocketed their gains following a four-day rally in the market last week.
The Philippine Stock Exchange index (PSEi) declined by 46.02 points or 0.68% to close at 6,628.49 on Monday, while the all shares index went down by 24.65 points or 0.6% to end at 4,022.83.
“Philippine shares closed lower after several days of successive gains last week as the index consolidated in the 6,500 to 6,700 range. There was also a lack of leads with the US being closed for Memorial Day…,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“Investors are waiting for the maiden listing of consumer heavyweight Monde Nissin, which lists [Tuesday] to kick-start the month of June. Many are assessing the latest economic data sets coming out,” Mr. Limlingan added.
“Investors booked gains while waiting for the government’s decision with respect to the quarantine measures of the country after May 31,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a separate Viber message. “Trading was tepid.”
Value turnover dropped to P5.39 billion on Monday with 1.39 billion shares switching hands, from the P12.41 billion with 1.67 billion issues traded on Friday.
Malacañang was expected to announce new lockdown measures for June as prevailing restrictions were only set to be in effect until May 31.
Investors are hoping for a slight easing in the lockdown so the economy can reopen further, boosting recovery prospects.
The Health department on Monday reported 6,684 new coronavirus cases, bringing the country’s infection tally to 1.23 million.
Active cases were at 54,290, while deaths stood at 20,966.
Majority of sectoral indices declined on Monday except for financials, which inched up by 1.04 points or 0.07% to 1,418.67.
Meanwhile, property shed 48.30 points or 1.47% to end at 3,225.42; services went down by 17.21 points or 1.13% to finish at 1,493.63; industrials lost 52.05 points or 0.57% to 8,937.59; holding firms declined by 19.91 points or 0.29% to 6,708.50; and mining and oil inched down by 5.82 points or 0.06% to close at 9,410.82.
Decliners outnumbered advancers, 103 against 85, while 57 names closed unchanged.
Net foreign buying dropped to P56.14 million on Monday from the P917.26 million recorded on Friday.
Philstocks Financial Research Associate Claire T. Alviar said she expects the PSE index to trade between the 6,600 to 6,900 range on Tuesday.
“The market may rebound on support area once the government eased the quarantine measures in Greater Manila,” Ms. Alviar said in a Viber message.
“Laxer restriction is expected to spur optimism in the market and recovery hopes would rise,” she added. — KCGV