Index plunges as investors remain on sidelines

The stock market slumped below the 6,000 mark yesterday, with the main composite index giving up 142.32 points to close at 5,860.94 as investors opted to stay on the sidelines ahead of President Duterte’s fifth State of the Nation Address (SONA).

Traders are mostly waiting for cues from Duterte’s SONA regarding the direction of the economy and how the country can better address the COVID-19 pandemic.

The broader All Shares index was also down, retreating by 65.18 points to close at 3,467.83.

Most of the sectors except for mining and oil traded in negative territory.

Total value turnover was thin at P3.937 billion. Market breadth was negative with 123 losers against 72 gainers, while 48 issues were left unchanged.

“PSEi shares ended lower to start the week as investor stayed on the sidelines ahead of the SONA, and the latest replacement to the US stimulus is still in the works.

The weaker macro activities worldwide also prompted fear of a slowdown in economic growth following the containment of the second wave,” Luis Limlingan of Regina Capital said yesterday.

Worries about COVID-19’s continued spread across the globe are also adding to the uncertainties.

Meanwhile, gold soared to an all-time high yesterday as worsening diplomatic ties between China and the United States rattled investors and fired up demand for the safe-haven metal, while stock market sentiment was mixed ahead of corporate earnings.