Share prices end flat on lack of catalysts

The bellwether Philippine Stock Exchange index (PSEi) ended flat yesterday as the absence of marketmoving catalysts kept investors on the sidelines.

The main index closed at 6,197.38, up by 4.80 points or 0.07 percent while the broader All Shares index finished at 3,652.60, 7.08 points or 0.19 percent higher.

Total value turnover was thin at P5.173 billion. Market breadth was negative with 115 decliners to 82 advancers, while 47 issues were unchanged.

Luis Limlingan of Regina Capital said traders are wondering about the consequences of a resumption of the lockdown on businesses.

“Investors bought up index names after the PSEi fell around 100 points in early trading session as many pondered about another round of business shutdowns to contain a surge in the virus and shifted their focus to the second-quarter earnings season. Concerns about the renewed lockdowns, however, outweighed signs of a recovery in US gasoline demand and kept a lid on oil prices. Brent crude futures were down two percent at $42.39. WTI crude futures slipped 3.13 percent to $39.62,” Limlingan said.

Foreign buying reached P1.92 billion while foreign selling was at P3.32 billion, translating to net foreign selling of P1.4 billion.

Earl Centino, trader at First Resources Management & Securities, said in a television interview that investors are not seeing any catalyst for the PSEi.

He said the PSEi has no impetus to go up especially with the spike in coronavirus disease 2019 or COVID-19 cases.