PH stocks flat on profittaking, FTSE rebalancing
THE stock market closed flat on Wednesday as profit-taking continues ahead of an expected rebalancing of the FTSE later this week.
The benchmark Philippine Stock Exchange index (PSEi) rose by 0.004 percent or 0.26 points to end at 6,282.01, while the wider All Shares shed 0.03 percent or 1.21 points to finish at 3,698.40.
“The market’s [flat] performance [was] due to continued profit-taking, since the market rally over the past few trading days has not been justified by its current valuations and future prospects despite [the] rally [in US markets],” Philstocks Financial Inc. research associate Piper Chaucer Tan said.
Investors also weighed in on rising geopolitical tensions and the International Monetary Fund’s warning of an unprecedented global economic crisis, he added.
“Investors are still [ into] the hype [ over] the listing of MerryMart (Consumer Corp.), which justifies the flattish performance of the market,” Tan said.
MerryMart shares continued to surge on Wednesday, adding P1.12 or 49.78 percent to close at P3.37 apiece.
“The value flow for the market dissipated since the market reached the 6,583 level. This is an indication that investors are on risk-off sentiment amid uncertainties [about] the future of not [only] listed companies, but [also] the Philippine economy,” Tan explained.
Regina Capital Development Corp. Managing Director Luis Limlingan, meanwhile, attributed the flat result to the FTSE’s scheduled rebalancing.
“Local shares closed flat as investors began to align with the FTSE rebalancing, which will take effect at the end of the week, while optimism over a recovering US economy overrode concern of a resurgence in coronavirus cases [in America]” he said.
On Wall Street, markets extended their rally. The Dow Jones,
S&P 500 and Nasdaq rose by 2.04 percent, 1.9 percent and 1.75 percent, respectively.
Most Asian markets posted slight gains. Shanghai climbed by 0.14 percent, Hong Kong was up 0.71 percent, Seoul improved by 0.14 percent, Jakarta inched up by 0.05 percent, Singapore increased by 0.26 percent and Bangkok added 0.63 percent. Tokyo shed 0.56 percent and Ho Chi Minh was also flat.
In Manila, most sectors were in the red, with industrial leading the losers at 0.87 percent. Holding firms gained 0.42 percent.
Total volume turnover was at 1.26 billion shares, valued at P8.09 billion.
Losers edged out winners, 97 to 92, while 61 securities were unchanged.