LOCAL SHARES declined on Monday due to the lack of a catalyst pushed investors to react to news of US President Donald Trump’s coronavirus disease.

The benchmark Philippine Stock Exchange index (PSEi) fell 60.45 points or 1% to close at 5,938.95. The wider all shares index trimmed 27.45 points or 0.76% to end at 3,558.82.

“No catalysts could support market rally that is why it is mainly moving in a sideways motion, ranging from 5,700 to 6,100,” Philstocks Financial, Inc.

The PSEi started at 6,005.58 yesterday and reached a top of 6,010.76 before closure in its intraday low of 5,938.95.

“For fourteen consecutive days, net foreign has been selling off which pulled the PSEI below 6,000. Offshore investors continue to watch the health condition of President Trump after he’s tested positive for the coronavirus,” Ms. Alviar added.

The US reported a 7.9% drop in the unemployment rate in September, but the recovery is slower than expected, which signals the need for more stimulation.

Stocks rose on Monday as evidence that Mr. Trump’s health was progressing eased some of the political instability brought on by his coronavirus disease, which sent investors rushing for safety weekly, Reuters reported.

That helped US S&P 500 e-mini stocks grow 0.62 percentage, while Nasdaq futures gained 0.89 percent.
MSCI’s broadest index of Asia-Pacific stocks outside Japan rose 1.08%.
Back home, sectoral indices in the PSE all finished in red territory on Monday.

Value turnover came at P6.46 billion jointly with 2.73 billion problems in switching hands, more significant than the previous session P4.91-billion worth of 1.47 billion dilemmas.
Decliners outnumbered advancers, 130 against 76. Some 42 names ceased unchanged.


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