Index wipes out earlier gains on last-minute selling

Share prices succumbed to selling pressure late in the session to wipe out earlier gains yesterday, opening the week on a lackluster note as investors continue to look for more compelling reasons to return to the bourse.

The benchmark Philippine Stock Exchange index (PSEi) finished at 6,369.28, down 1.59 points or 0.02 percent, while the broader All Shares index ended flat at 3,923.00.

Total value turnover was thin at P4.39 billion. Market breadth was negative, 111 to 83, while 56 issues were unchanged.

PhilStocks Financial analyst Japhet Tantiangco said the local market was unable to sustain its gains as investors took profits at the last minute.

“The inability to sustain gains reflects investors’ low confidence toward the market as they remain worrisome over our pandemic situation and economic outlook. Trading became even more anemic with net value turnover yesterday registering P3.92 billion, below last week’s daily average of P4.93 billion, and the year-to-date average of P8.49 billion,” he said.

What this shows, he said, is that investors are still worried over lingering uncertainties.

“Foreigners remained net sellers with net outflows amounting to P429.45 million. Net foreign selling is already on a 22-day streak averaging P731.78 million per day,” Tantiangco said.

In a market commentary, AB Capital Securities said the market briefly traded in the 6,400-level, but gains were cut toward the end of the session, and reversed on last-minute selling.