Congress row, vaccine setback drive PSEi down

A host of negative factors contributed to the drop in local share prices anew yesterday.

The benchmark Philippine Stock Exchange index slipped 13.82 points or 0.23 percent while the broader All Shares index declined 2.68 points or 0.07 percent.

Traders said the speakership row at the House of Representatives, which is causing the delay in the passage of next year’s national budget – an essential component in economic recovery – and a potential setback in the development of a COVID-19 vaccine have led investors to the sidelines.

Others are likely saving up for the upcoming P29 billion initial public offering of Converge ICT on Oct. 26 or the P20-billion preferred share sale of San Miguel Corp. on Oct. 29.

A total of P5.001 billion worth of shares changed hands yesterday. Market breadth was slightly positive, 98 to 95, while 59 issues were unchanged.

Chris Mangun of AAA Equities said the PSEi ended slightly lower as the sentiment on blue chips remained cautious.

“Investors are watching the economic recovery very closely and signs of a plateau are becoming more evident. Mobility restrictions and lack of fiscal stimulus are the leading causes of the plateau. In the meantime, investors will continue to look for opportunities in the second liners and speculative issues,” Mangun said.

“The improvement in the sentiment on markets abroad have failed to excite investors in our market. Foreign outflows continue as returns are more attractive in other markets,” he said.