Index pauses after 4-day upswing

Index pauses after 4-day upswing

MANILA, Philippines — Stocks paused after a four-day rally as investors took profits at the close of trading yesterday.

The main Philippine Stock Exchange index (PSEi) finished at 6,633.22, down 85.29 points or 1.27 percent, while the broader All Shares index slipped 17.91 points or 0.43 percent to close at 4,123.72.

“Local market was hovering between gains and losses for the session, but losses were magnified on last-minute selling,” AB Capital Securities said in a commentary.

Asian stock markets also fell yesterday as worries surrounding the spread of the Delta variant again took center stage.

Traders are watching mounting infections around the world, including in New Zealand, which is in lockdown after reporting its first outbreak in six months.

“With the number of COVID-19 infections on the rise, especially in the US, the threat from the Delta variant is becoming more apparent spurring cautious risk sentiment,” said Venkateswaran Lavanya of Mizuho Bank.

Local trades initially cheered news the strict lockdown in the Metro Manila has been eased until the end of this month, but later sold off stocks for gains.

All sectors finished in the red, with total value turnover hitting P6.3 billion.

Market breadth, however, was positive, 113 to 78, while 47 issues were unchanged.

Rizal Commercial Banking Corp. economist Michael Ricafort said the important market leads or catalysts for the coming days include a decision on whether or not to extend the quarantine status in NCR in view of higher COVID-19 local cases recently as well as the trend in the new COVID-19 cases in Asia and worldwide.