PSEi Suffers Worst Day of the Year After Closing at 6,299.69

The Philippine Stock Exchange index (PSEi) closed at 6,299.69 on Wednesday after falling 59.46 points or 0.94%, marking the worst level it has reached so far in the year. This significant dip heightens investors’ risk aversion.

“The market is slowly giving up all the gains from the last rally that started in October. Inflation for the month of April came in at 4.5 percent, exactly the same as the month before, which should mean that prices are peaking and may begin to decline and should have generated some optimism,” said AAA Equities head researcher Cristopher Mangun.

“The steady decline in new COVID-19 cases has failed to generate optimism as it may not lead to an easing of restrictions in the coming weeks. Investors are now considering the possibility of staying under current restrictions until a substantial percentage of the population has been fully vaccinated,” he explained further.

All counters slipped except for the oil/mining sector, which continues to reap benefits as its regulatory environment becomes more favorable.

Value turnover stood at only ₱3.89 billion, while the worth of net foreign selling reached ₱653.37 million for the day.

43 stocks remained unchanged. Decliners outnumbered advancers, 114 to 92.

Source: Inquirer