Stocks drop on 4th straight day as investors take profit

    551

    Share prices continued to take profit Wednesday, dragging the market down for the fourth straight day.

    The Philippine Stock Exchange index (PSEi) was down 55.15 points to 7,143.30, a 0.77 percent drop.

    The broader all shares index was down 19.62 points to 4,300.12, a 0.45 percent drop.
    Losers edged gainers 137 to 91 with 40 stocks unchanged. Trading turnover reached P13.1 billion.

    The peso closed at 48.06 to the dollar, up from 48.078. It opened at 48.03, an intraday high and hitt a low of 48.06. Trading turnover reached $727.5 billion.

    Other Asian currencies rose Wednesday as the dollar came under pressure after US Treasury Secretary nominee Janet Yellen stressed on more stimulus, while Malaysia’s ringgit and shares held steady as its central bank stood pat on interest rates.

    Regional currencies strengthened as the dollar backed away from a one-month high, with the South Korean won, Singapore dollar and Thai baht trading around 0.2 percent higher against the greenback.

    In Malaysia, the ringgit traded at 4.042 per dollar, in line with levels seen in morning trade, after the country’s central bank kept its overnight policy rate at a record low of 1.75 percent.

    Five out of 15 economists in a Reuters poll had expected the move, but a majority had expected Bank Negara Malaysia (BNM) to cut rates to support an economy facing fresh lockdowns amid surging coronavirus cases.

    Bank Indonesia will likely keep interest rates steady at 3.75 percent, a Reuters poll showed, with analysts pointing to the central bank facing the need to keep rate differentials attractive for foreign investors after a recent rise in US bond yields.

    Asian currencies and bonds have lagged as the prospect of more government spending under a Joe Biden administration pushed up US treasury yields earlier this month, reducing the appeal of some of the region’s high-yielding government debt.

    Japhet Tantiangco, analyst at Philstocks Financial Corp. said investors at the local bourse “continued to book gains amid the lack of a catalyst.”

    “Pandemic worries also continued to weigh on sentiment,” Tantiangco said.
    Foreigners funds were were net sellers worth P688.4 million.

    Most actively traded Apollo Global Capital Inc. was up P0.065 to P0.430. Abra Mining and Industrial Corp. was down P0.0025 to P0.0085. AbaCore Capital Holdings Inc. was up P0.03 to P1.38. Basic Energy Corp. was down P0.08 to P1.69. MRC Allied Inc. was down P0.06 to P0.82. Dito CME Holdings Corp. was down 0.40 to P0.24. Philodrill Corp. was down P0.004 to P0.024. Premier Horizon Alliance Corp. was down P0.29 to P2.81. Ayala Corp. was down P31 to P795. SM Investments Corp. was down P5 to P1,067.