Stocks retreat anew on lack of new catalysts

Share prices fell for a second day yesterday as investors waited on the sidelines for fresh catalysts to drive the market, as rising COVID cases also put a damper on trades.

“The local bourse fell further on resurfacing concerns over COVID-19 risks amid the detection of more cases in the country with Omicron subvariants weighed on the market. Our year-to-date balance of payment deficit which is already wider compared to the same period last year has also dampened sentiment,” said Philstocks Financial.

“The local market continued to fade the rally with strong resistance at the 6,350-level, where sellers dominated the market and dragged the index down for the second consecutive day,” AB Capital Securities said in a commentary.

The 30-company Philippine Stock Exchange index or PSEi dropped 18.63 points or 0.3 percent to close at 6,256.17 while the broader All Shares index inched up by a mere 0.33 point or 0.01 percent to end at 3,381.86.

A total of P6.09 billion worth of shares changed hands yesterday, with advancers outnumbering decliners, 107 to 69, while 60 stocks were unchanged.

Elsewhere in Asia, shares were mixed as optimism over earnings was tempered by persistent concerns about inflation and the Chinese economy, despite an overnight rally on Wall Street.

Eyes were on the Bank of Japan, which wrapped up a two-day policy meeting, without any major policy changes, as was widely expected.

The BOJ has not indicated it will follow the lead of other central banks, including the US Federal Reserve, in raising interest rates to curb inflation. Japan has suffered years of stagnation, when deflation or falling prices was a major problem.

“After the strong showing in Wall Street over the past two days, particularly so for tech stocks, markets may take somewhat of a breather. Lingering caution persists for Chinese equities amid both virus and property sector risks,” Yeap Jun Rong, market strategist at IG in Singapore, said in a commentary.

A mid-week rally driven by strong corporate earnings appeared to be losing steam, laden by worries over energy supplies in Europe and slowing growth in China.