Worries over recovery spook stocks; peso up

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    Share prices ended lower Wednesday amid profit-taking as investors tracked overseas leads while discounting the economy’s return to normal.

    The Philippine Stock Exchange index (PSEi) was down 58.72 points to 6,755.95, a 0.86 percent drop.

    The broader all shares index was down 41.56 points to 4,100.16, a 1 percent drop.

    Losers edged gainers 174 to 58 with 37 stocks unchanged. Trading turnover reached P14.7 billion.

    The peso closed at 48.605 to the dollar, up from 48.64 on Tuesday. The currency opened at 48.60 and hit a high of 48.57 and a low of 48.75. Trading turnover reached $1.19 billion.

    “Philippine stocks retreated on Wednesday amid the regional downtrend on investor concerns over rising inflation expectations as well as potential slowdown in economic recovery given the lack of vaccine rollouts and unchanged community quarantine restrictions, which tend to hamper mobility,” said SB Equities Inc.

    “With net foreign outflows occurring for the seventh session, the PSEi closed the day lower,” it added.

    Claire Alviar, analyst at Philstocks Financial Corp., said investors digested the decision of the government to reject the recommendation to place the entire country under modified general community quarantine without the COVID-19 vaccine rollout.

    “Negative sentiment remains in the market since worries over the economic recovery heightened given the uncertainties on the rollout of the vaccine. As of the moment, there’s still no exact date on when the vaccine will arrive in the Philippines. Without reopening the economy further, it would be hard for the country to rebound from the pandemic,” she said.

    “In addition, Asian markets were mostly in the red as investors turned cautious,” Alviar added.

    Foreign funds were net sellers worth P652.9 million.

    Most actively traded Dito CME Holdings Corp. was down P1.80 to P16. Premier Horizon Alliance Corp. was up P0.07 to P2.98. AC Energy Corp. was down P0.23 to P7.22. Apollo Global Capital Inc. was down P0.02 to P0.255. BDO Unibank Inc. was down P1.80 to P103.20. Metropolitan Bank and Trust Co. was up P0.05 to P50.25. SM Investments Corp. was down P22 to P1,038. SM Prime Holdings Inc. was down P0.50 to P35. MerryMart Consumer Corp. was down P0.31 to P6.71. Ayala Land Inc. was down P0.45 to P38.65.