Weak participation, catalyst lack drag PSEi

THE stock market capped off another trading week in the red on investors’ anemic participation and the absence of catalysts.

The benchmark Philippine Stock Exchange index (PSEi) declined by 0.67 percent or 39.86 points to end at its intraday low of 5,898.47 while the wider All Shares dipped by 0.1 percent or 3.71 points to close at 3,581.91.

Philstocks Financial Inc. research associate Piper Chaucer Tan said the

bourse endured another loss for the second straight week amid weak market participation as investors remained on the sidelines.

The main index posted a total value turnover of P5.6 billion, much lower than the year-to-date average of P6.2 billion.

Tan said the downward movement resulted from investors’ lack of confidence in the market and lingering economic worries.

“But on the bright side, [the] 5,700 [level] has been obviously respected by the market and this goes to show that it has been clearly supported by the bulls,” he added.

The Philstocks analyst sees local shares moving sideways, unless a major development in the coronavirus disease 2019 (Covid-19) pandemic and corporate earnings “turn the tides around.”

As of Friday, the number of confirmed Covid-19 cases soared by 3,139 to 351,750, of which 50,354 are active, according to a Department of Health tally. Of the total, 294,865 have recovered and 6,531 did not.

Local sectors finished mixed. The mining and oil indices led winners after rising by 10.79 percent, while holding firms shed the most at 1.48 percent.

Total volume turnover was at 4.89 billion shares, valued at P5.64 billion.

Advancers outperformed decliners, 118 to 89, while 46 securities were unchanged.