Shares drop on profit taking amid uncertainties

shares drop on profit taking amid uncertainties - Shares drop on profit taking amid uncertainties

By Denise A. Valdez, Senior Reporter

PHILIPPINE SHARES declined on Thursday as investors secured profits amid declining global markets.

The 30-member Philippine Stock Exchange index (PSEi) erased 128.40 points or 2.01% to close at 6,249.39, while the broader all shares index cut 55.21 points or 1.45% to end at 3,753.08.

“Local shares saw one of its worst sell-offs in months amid rising COVID (coronavirus disease 2019) cases and jitters over the (US) election outcome,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.

More than 500,000 new coronavirus cases were recorded across the globe on Wednesday, with the majority coming from the United States (US), India, France, and other European countries.

This resulted in a second national lockdown declared in France and Germany, and the United Kingdom being expected to follow the same track.

The upcoming US election on Nov. 3 is also causing jitters among investors amid uncertainties over how the results will affect the country’s economic recovery.

Overseas markets plummeted during Wednesday’s trading: the Dow by 3.43%; S&P 500 by 3.53%; Nasdaq by 3.73%; Euro Stoxx 50 by 3.49%; FTSE 100 by 2.55%; and Dax by 4.17%.

This led investors back home to pocket profits from the recent PSEi rally, Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said.

“Market continued its correction on profit taking… as the increasing transmission rate of the pandemic in the US and Europe (is seen to) derail economic recovery,” Mr. Pangan said in a text message.

Local events such as incoming typhoons are also weighing on sentiment, AAA Southeast Equities, Inc. Research Head Christopher John Mangun said.

“The sentiment may (also) have been negatively affected by the series of typhoons that have hit and will continue to come in by next week. The selldown may continue on the last day for the week,” Mr. Mangun said in an email.

All sectoral indices ended Thursday’s trading in red territory. Mining and oil dropped 197.93 points or 2.61% to 7,373.26; financials lost 30.39 points or 2.42% to 1,221.29; services fell 30.87 points or 2.09% to 1,442.84; holding firms shaved off 124.20 points or 1.87% to 6,486.45; industrials decreased 155.20 points or 1.81% to 8,416.73; and property slid 49.04 points or 1.61% to 2,991.32.

Value turnover was trimmed to P6.66 billion from P6.8 billion in the last session. Some 3.36 billion issues switched hands, up from 1.75 billion issues the previous day.

Decliners outnumbered advancers, 147 against 58, while 52 names ended unchanged.

Net foreign selling continued on Thursday, growing to P942.94 million on Thursday from P442.88 million in the previous session.

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