Stocks lose momentum as market pockets gains

By Denise A. Valdez, Senior Reporter LOCAL SHARES started to lose momentum on Monday as investors began to pocket gains from the recent rally, resulting in flattish trading. The Philippine Stock Exchange index (PSEi) inched up 7.13 points or 0.11% to close Monday’s session at 6,491.19. The wider all shares […]

By Denise A. Valdez, Senior Reporter

LOCAL SHARES started to lose momentum on Monday as investors began to pocket gains from the recent rally, resulting in flattish trading.

The Philippine Stock Exchange index (PSEi) inched up 7.13 points or 0.11% to close Monday’s session at 6,491.19. The wider all shares index fell 0.59 point or 0.01% to 3,859.36.

“We saw some profit taking in early trading; however, investors were quick to pick up issues that pulled back,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.

The PSEi opened at 6,496.19 and reached a low of 6,453.20 intraday. It started picking up during the last minutes of trading, peaking at 6,517.26 but eventually falling to close at 6,491.19.

“Philippine shares initially continued to struggle for direction. bouncing around the break-even line, as several uncertainties loomed large,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.

After the market’s strong performance last week following the announcement of eased quarantine rules for tourism and travel, investors started considering that holiday activities may not be as robust this year as in previous years.

Local coronavirus cases continue to grow by the thousands and there is still fear of going out among consumers.

“In terms of individual issues, the performance of blue chips were mixed. We may see the main index decline in the coming days as more investors secure profits,” Mr. Mangun said.

A total of 16 out of 30 PSEi members posted gains on Monday, while 13 closed lower and one ended flat.

Converge ICT Solutions, Inc., which debuted on the market on Monday, was the most traded issue for the day. Its shares closed at P15.22 apiece, down P1.58 or 9.40% from its offer price.

“(Converge closed) lower than its IPO (initial public offering) price as investors that weren’t interested in holding it for the longer term, cashed out,” Mr. Mangun said.

Sectoral indices were also mixed on Monday. Services picked up 11.97 points or 0.81% to 1,472.68; property added 5.31 points or 0.16% to 3,143.06; and holding firms climbed 8.66 points or 0.12% to 6,730.71.

On the other hand, financials shed 5.21 points or 0.40% to 1,269.53; industrials trimmed 18.41 points or 0.21% to 8,610.03; and mining and oil slid 12.46 points or 0.16% to 7,693.27 at the end of trading.

Value turnover jumped to P31.09 billion on Monday against the last session’s P8.49 billion. Some 2.72 billion issues switched hands, up from 1.38 billion issues in the previous trading.

Decliners outnumbered advancers by five, 107 against 102. Some 44 names ended unchanged.

Foreign investors remained net buyers, posting net inflows of P4.44 billion on Monday, surging from the P795.65 million seen in the previous session.

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