Local shares tumbled back to the 5,900 territory on Wednesday as selling pressures grew and investors remain wary.
The bellwether Philippine Stock Exchange index (PSEi) lost 1.19 percent or 71.59 points to finish at 5,946.62 while the broader All Shares declined by 0.72 percent or 25.76 points to close at 3,565.81.
AAA Equities Head of Research Christopher Mangun said the losses were felt across the board as investors reduced risks and monitored the economy’s recovery.
“Although the general sentiment has improved since economic activity picked up, investors remain cautious to avoid ‘jumping the gun,’ similar to what we saw back in June, when the market rallied too far, too fast,” Mangun explained.
The bourse’s current movement with less volatility creates a better environment for investors, according to him.
Regina Capital Development Corp. Managing Director Luis Limlingan said local stocks were sold ahead of a policy update from the central banks of the United States, Japan and United Kingdom.
Other reasons for the stock market’s negative performance include reports about the World Trade Organization’s finding that the US’ 2018 imposition of tariffs on China violated international rules, America’s decision to remove the 10-percent aluminum tariff it slapped on Canada last month, and developments on studies on and production of a possible coronavirus disease 2019 (Covid-19) vaccine.
Wall Street continued to rally overnight, with the Dow Jones, S&P 500 and Nasdaq gaining 0.01 percent, 0.52 percent and 1.21 percent, respectively.
Asian markets were mixed. Tokyo inched up by 0.09 percent, Singapore climbed by 0.71 percent and Bangkok added 0.25 percent. Shanghai slipped by 0.36 percent, Seoul shed 0.31 percent and Jakarta lost 0.91 percent. Ho Chi Minh was flat.
In Manila, only the mining and oil sectors grew at 0.71 percent, while industrial led the losers at 1.68 percent.
Total volume turnover was at 652.4 million shares, valued at P5.36 billion.
Decliners edged out advancers, 97 to 87, while 52 securities were unchanged.
WITH A REPORT FROM PNA