The stock market retraced its losses due to profit taking

stock market

Manila, Philippines — Yesterday the local stock market struck a wall again, erasing Thursday’s increase to return to negative territory, which ended four weeks of profits.

The Philippine Stock Exchange (PSEi) benchmark closed at 6912,85, fell by 55,58 points or 0,80% while the broader All-Shares index fell at 27,69 points or 0,64% to 4295,84.

Total turnover in value amounted to P15,2 billion. Market width was negative, from 119 to 74, with 52 unchanged problems.

Jonathan Ravelas, BDO Unibank‘s chief market strategist, once suggested the market is struggling to support the climb to 7,000 levels.

“It hit a wall of concern ” (pandemic, inflation woes, US taper just around the corner). Market traders take every rally to raise/take profit and wait till prices fall,” he said.

For Claire Alviar, PhilStocks Financial research analyst, the drop from the local stock market could be attributed to the profit gain on the last trading day of the week, with negative feelings as the Philippine growth forecast of Moody’s Investor Service was reduced to 4.8 percent for 2021 as a result of strict lockouts and slow vaccine rollout.

Net overseas sales of P812.96 million also affected the market performance.

In the future, she indicated that if profits continue with massive market involvement, the market may collapse further and cannot effectively break 7,000 to 7,100 levels.

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