The stock market slipped out of the 7,200 level on Wednesday as investors took in profits amid worries of a possible spike in coronavirus disease 2019 (Covid-19) infections.
The bellwether Philippine Stock Exchange index (PSEi) declined by 1.4 percent or 101.01 points to end at its intraday low of 7,102.66 while the broader All Shares dropped by 0.77 percent or 32.92 points to close at 4,253.13.
AAA Equities Head of Research Christopher Mangun attributed Wednesday’s performance to the resumption of profit taking, but noted that investors remained comfortable with current market conditions, as trading volumes remained high and second-liners continued to see volatility.
“Despite the positive sentiment, investors are not willing to pay a higher price for blue chips, at least not before the holidays,” Mangun said. “Investors may want to see how well the economy performs this December before justifying a higher valuation.”
He added that there was growing concern that the number of new coronavirus cases in the country might surge because of the anticipated increase in mobility and gatherings during the holidays.
As of Wednesday, the number of confirmed Covid-19 infections increased by 1,387 to 444,164, of which 26,545 are active. Of the total, 408,942 have recovered and 8,677 did not.
Regina Capital Development Corp. Managing Director Luis Limlingan said the market saw a selldown after failing to sustain the 7,200 psychological mark. He added that funds returned to other regional markets that would be among the first to receive the Covid-19 vaccine.
On Tuesday, the United Kingdom began rolling out its vaccination program using the Covid-19 doses developed by US pharmaceutical giant Pfizer and its German partner BioNTech, almost a week after British regulators approved their distribution.
Although Russia has started vaccinations with its Sputnik V vaccine and China has also begun giving its own domestically made shots to its citizens and selling them abroad, these were viewed differently because neither countries’ vaccines have finished the late-stage trials that scientists consider essential for proving a serum is safe and effective.
Local sectors closed mixed, with mining and oil and industrial advancing at 3.81 percent and 0.74 percent, respectively. Property lost the most at 1.81 percent.
Total volume turnover reached 99.2 billion shares, valued at P9.88 billion.
Gainers outpaced losers, 132 to 117, while 27 securities were unchanged.
WITH A REPORT FROM AP