Stocks retreat on profit taking

The stock market retreated yesterday as investors took profits.

The benchmark Philippine Stock Exchange Composite index (PSEi) closed at 6,403.24, down 34.14 points or 0.53 percent.

“The Bangko Sentral ng Pilipinas’ expectation that the Philippine economic growth may slow down in the next two years amid internal and external headwinds and monetary tightening, weighed on sentiment,” said Claire Alviar of Philstocks Financials.

Likewise, the broader All Shares index slipped by 10.67 points to close at 3,385.96.

The sectoral gauges, meanwhile, were mixed with industrial, services, financials and mining and oil ending in positive territory. Property and holding firms, on the other hand, finished in the red.

Total value turnover reached P6.238 billion. Market breadth was negative with 97 losers and 87 gainers, while 40 issues were unchanged.

Meanwhile, Asian markets fell yesterday as China’s first COVID death in six months sparked fears officials would reimpose strict, economically painful restrictions to fight outbreaks across the country.

The news threw a spanner in the works for investors who had grown hopeful of a gradual reopening after China eased a number of virus-fighting measures this month.

The death of an 87-year-old man in Beijing on Sunday came as infections across the country spiked, testing authorities’ plans to loosen their grip by lowering quarantine times for foreigners and cancelling mass tests.

Beijing has in recent days moved to confine some residents to their homes and ordered others to quarantine centers.

“It feels like one step forward, two steps back,” said Willer Chen, at Forsyth Barr Asia.

“It is super hard to reopen in the short term given winter is coming and cases are at a super high level and spreading across the whole country.”

The measures dealt a particular blow to Hong Kong’s Hang Seng Index, which fell nearly two percent, extending a sell-off at the end of last week and eating further into a recent massive rally. Shanghai was also down.