The local bourse ended in the red on Monday amid profit taking and the rising number of coronavirus disease 2019 (Covid-19) cases globally.
The bellwether Philippine Stock Exchange index (PSEi) contracted by 0.74 percent or 51.83 points to 6,918.05, while the broader All Shares shed 0.25 percent or 10.18 points to close at 4,073.37.
AAA Equities head of research Christopher Mangun said selling pressure picked up after the market’s rally at the end of last week.
He noted that investors are taking profits while prices remain at their eight-month highs.
“This pullback is extremely beneficial for the market’s uptrend as it relieves pressure,” Mangun explained.
He sees the main index continuing lower in the coming sessions to test its support at 6,700.
Despite this, Mangun said investors remain confident in the market, which could be seen in the above average trading volumes.
Meanwhile, Regina Capital Development Corp. Managing Director Luis Limlingan attributed local shares’ decline to fears that rising Covid-19 cases might slow down the global economy’s recovery,
“Increasing coronavirus infections globally reignited concerns about the economic toll from the pandemic, while skepticism over the reach of a potential Covid-19 vaccine further boosted the safe-haven metal,” Limlingan said.
Latest data from John Hopkins University show that confirmed Covid-19 cases globally have reached 54.3 million, with the US breaching the 11-million mark.
The industrial and financial sectors were the only survivors at 0.41 percent and 0.12 percent, respectively, while the mining and oil segment led the shedders at 1.69 percent.
Total volume turnover was at 2.36 billion shares valued at P8.78 billion.
Gainers barely outpaced losers at 119 to 109, while 30 securities were unchanged.