PSE INCHES UP

The Philippine Stock Exchange (PSE) today inched up to the psychological 6,000-point milestone but the foreign selling continued unabated, again hitting banking stocks, as foreign investors continue to be worried over the economic downturn in the country exacerbated by the continued Covid-19 upsurge.

Bank of PI and BDO Unibank posted declines of 50 centavos and P1.05 respectively as net foreign selling of P171 million hit BPI and P151 million for BDO. Total foreign selling amounted to P2.24 billion although foreign buying was registered at P1.84 billion for a net foreign selling of P377 million.

PSE’s index went up slightly to 5,953.94 points, up 23.02 points or 0.39 percent with gainers at 115 against 84 decliners and 38 issues unchanged. Many of the second-liner stocks had trades again as investors transfer their risk appetite to the low-priced stocks in another uneventful day.

Value turnover remained low at P5.31 billion as the market continues to reel on the lack of good economic news to counter the earlier report on the huge contraction in the gross domestic product for the second semester that investors see as red flags on the strength of the economy.

Economists now see a further contraction in the year-end GDP level to much lower than the government’s earlier forecast of about 7 percent because of the hefty GDP decline although the Bangko Sentral ng Pilipinas and the National Economic Development Authority still sees a silver lining in the horizon.

Foreign investors have been rattled by the upsurge in the corona virus cases, that coupled with the GDP contraction, the first in 30 years, have led to the exit of foreign money from the stock market.

The financial sector, together with the industrial group, posted losses that were countered by the big increase in the service sector which rose by 1.53 percent and the small gains in the holding sector, property group, and mining and services sectors.

Telco firms PLDT and Globe Telecom had contrasting finishes with PLDT up by a peso to P1,390 and Globe down by P20 to P2,180. Both also had net foreign selling of P78 million for PLDT and P44 million for Globe. Dito, the third telco, went up by 13 centavos to P3.10.

Market darling Merry Mart continued to be within the Top 20 active stocks as its share price went up by 13 centavos to P3.03 Emperador and Jollibee Foods respectively rose by 14 centavos and P3.60 to close at P9.99 and P141.

Ayala Land lost 60 centavos while SM Investments was down by P4 as they finished the day as the most active stock and second most active with transactions of P427 million and P390 million. The third and fourth active stock were BDO and BPI showing the negative sentiment on the market.