Lack of fresh impetus keeps stocks grounded

The stock market ended flat again yesterday as investors see no impetus yet to return to the market as they await for new quarantine guidelines and as traders worry over the long term impact of the ABS-CBN closure.

The benchmark Philippine Stock Exchange index (PSEi) finished at 6,172.81, struggling to stay afloat with an uptick of 0.24 points or 0.004 percent.

The broader All Shares index slumped to 3,625.85, down 7.90 points or 0.21 percent.

Most indexes ended in negative territory led by mining and oil, industrial and services sectors.

Total value turnover reached P5.127 billion. Market breadth was negative with 126 losers and 87 gainers, while 29 issues were left unchanged.

Philstocks Financials said in a commentary: “The local bourse ended the session flat, adding only 0.24 points to 6,172.81, due to lack of strong catalyst while investors await new quarantine guidelines.”

Asian markets were in the red due to profit taking, Philstocks also said.

Luis Limlingan of Regina Capital, meanwhile, attributed the flat trading session to the Trump administration’s rejection of China’s expansive claims in the South China Sea, which is seen to escalate tensions with Beijing on yet another front.

“The move reverses a previous policy of not taking sides in territorial disputes in the region. In the past, the US has called for protecting freedom of navigation in the contested waterway while stopping short of taking a position on specific territorial claims,” Limlingan said.