Stocks fall as investors take profits from the rally

SHARES made its three-day rally on Thursday as investors took profits and after Nikkei Asia’s 2019 coronavirus disease (COVID-19) recovery report put the Philippines in last place.

The Philippine Stock Exchange Index (PSEi) fell 106.15 points, or 1.50%, on Thursday to close at 6,951.30 while the All Shares Index fell 54.29 points, or 1.23%, and closed at 4,354.85 ended.

“The index retreated a day after breaking its 7,000 resistance and may need to repeat that resistance challenge after closing at 6,951,” said Juanis G. Barredo, chief technical analyst of COL Financial Group, Inc., in a Viber -News.

“The local stock market fell this Thursday … as investors took profits from their previous three-day rally,” Japhet Louis O. Tantiangco, senior research and engagement supervisor at Philstocks Financial, Inc., said in a separate Viber message.

“Nikkei Asia’s COVID-19 recovery index, which ranked the Philippines last, also weighed on market sentiment,” he added.

The Philippines ranked last in Nikkei Asia’s report, which ranked 121 countries based on their COVID-19 situation for management of infections, vaccination programs and social mobility. A higher ranking means the country is on the verge of recovery.

Most sector indices closed in the red on Thursday, with the exception of financial stocks, which rose 13.28 points, or 0.92%, to 1,444.09. COL Financial’s Mr. Barredo noted that BDO Unibank, Inc., Metropolitan Bank & Trust Co., and Bank of the Philippine Islands were some of the topics that “generated some demand.”

“[Wilcon Depot, Inc.], how [a] soon new index stock, fluctuated, shot to P40 in a moment and then fell back to P34.00 and closed with a daily gain of 8%. It would soon replace FGEN (First Gen Corp.) on the index list, ”said Barredo.

The PSE announced on Wednesday that First Gen in the 30-strong PSEi will be replaced by Wilcon following the announcement of the former about its takeover offer. The First Gen is also excluded from PSE’s industrial index.

Services lost 63.10 points, or 3.12%, to 1,954.03 points; Holding companies fell by 154.75 points or 2.20% to 6,872.98; Mining and Oil declined 162.09 points, or 1.66%, to 9,601.65 points; Industrials fell 70.54 points, or 0.67%, to 10,371.44; and real estate fell 6.05 points, or 0.19%, to 3,067.33 points.

Turnover rose to 13.17 billion pesos after 1.40 billion shares changed hands on Thursday, up from 9.55 billion pesos with 2.71 billion issues traded the previous day.

Rejecters beat newcomers, 137 versus 62, while 46 names closed unchanged.

Net foreign sales rose to 1.47 billion pesos on Thursday, from 356.05 million pesos on Wednesday.

“We still believe the rotation could continue and cause the index to fluctuate and try to make new recent highs,” said Barredo. “Market resistance is 7,064 followed by 7,400, short-term support is seen between 6,925 and 6,840.” – Keren Concepcion G. Valmonte

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