PSEi opens week slightly lower

The main index opened the trading week slightly lower as uncertainties remained in the market.

The benchmark Philippine Stock Exchange index (PSEi) slipped 0.41 percent or 26.53 points to 6,518.64, while the wider All Shares shed 0.26 percent or 10.39 points to finish at 3,988.25 on Monday.

AAA Equities head of research Christopher Mangun said the “uncertainty on the pace of the economy’s recovery remains a major concern as new Covid-19 (coronavirus disease 2019) cases continue to rise.”

The Philippines recorded 11,681 new Covid-19 cases on Sunday, bringing the tally to 864,868. Of the total, 146,519 are active cases, 14,945 are fatalities and 703,404 are recoveries.

“After last week’s surprising positive performance, investors were expecting stronger buying pressure at the beginning of the session. However, buyers were not interested, which caused selling pressure to pick up towards the end of the session,” Mangun explained.

The market opened at 6,562.11 and reached its intraday high of 6,566.67 and its low of 6,504.59 before closing marginally higher.

“Clarity on the guidelines of current MECQ restrictions may be the reason why investors held back,” Mangun said.

Presidential spokesman Harry Roque on Sunday announced that the National Capital Region and the provinces of Bulacan, Cavite, Laguna and Rizal would be placed under less stringent modified enhanced community quarantine (MECQ) for the remainder of April.

“We may see the PSEi move towards support at 6,400 with the main trend being sideways till the end of the week,” Mangun noted.

The financials index was the sole advancer among local sectors at 0.26 percent, while the mining and oil sector led the decliners at 1.32 percent.

Total volume turnover was at 2.43 billion shares valued at P5.97 billion.

Losers edged out winners, 120 to 86, while 48 securities were unchanged.