Stocks extend losses

The main stock index sustained more losses on Thursday amid increased selling pressure and profit taking.

The benchmark Philippine Stock Exchange index (PSEi) slipped by 0.37 percent or 23.86 points to close at 6,415.53, while the wider All Shares declined by 0.43 percent or 16.93 points to end at 3,947.41.

AAA Equities head of research Christopher Mangun said the market extended its decline as large-cap blue chips saw an increased selling pressure.

“Some investors are beginning to unload equities and reduce risks on renewed expectations of a slower economic recovery due to the dire public health situation,” Mangun said.

He added that the pick up in foreign fund outflows also contributed to the decline as net foreign selling amounted to P1.21 billion on Thursday.

“If we continue to see a lack of buying in the coming trading sessions, selling pressure may pick up significantly, which will send the market another leg lower,” Mangun noted.

For his part, Regina Capital Development Corp. Managing Director Luis Limlingan said local shares succumbed to profit taking as “investors piled into regional equities most sensitive to an economic recovery.”

“Risk also fluctuated overnight amidst earnings news and concerns about rising Covid cases in a number of spots, particularly India,” Limlingan continued.

All local sectors were in the negative territory led by the mining and oil index at 3.45 percent.

Total volume turnover was at 3.66 billion shares valued at P5.65 billion.

Losers edged out winners, 127 to 71, while 46 securities were unchanged.