PSEi ends in the red

Selling pressure prompted the local bourse to extend its decline for the third straight day amid economic recovery woes and Wall Street’s overnight decline.

The bellwether Philippine Stock Exchange index (PSEi) slumped by 0.58 percent, or 37.46 points to 6,378.07, while the broader All Shares declined by 0.51 percent, or 20.22 points to finish at 3,927.19 on Friday.

Philstocks Financial Inc. senior research analyst Japhet Tantiangco said worries on the pace and strength of the country’s economic recovery persisted amid the still rising coronavirus disease 2019 (Covid-19) cases locally.

He also noted the lack of catalysts that could spur optimism in the market.

Tantiangco added the main index took cues from Wall Street, which dropped following reports that US President Joe Biden’s administration is planning to raise the capital gains tax for Americans earning more than $1 million.

The Dow Jones and Nasdaq both lost 0.94 percent, while the S&P 500 tumbled by 0.92 percent overnight.

Regina Capital Development Corp. Managing Director Luis Limlingan likewise attributed the local shares’ dip to the reports on Biden’s plans to increase the capital gains tax as it dampened sentiment.

Only the financials index climbed among local sectors at 0.14 percent, while the rest ended bloodied with mining and oil leading at 1.63 percent.

Total volume turnover was at 2.04 billion shares valued at P5.87 billion.

Losers edged out winners, 132 to 64, while 47 securities were unchanged.