The MARKET surrendered to profit takers on Wednesday, yanking the major index back into the 5,900 level, following a drop in Wall Street after it re-opened on Tuesday.
The bellwether Philippine Stock Exchange index (PSEi) dropped at 101.19 points or 1.67 percent to close at 5,932.84. The broader all shares index also lost 42.02 points or 1.16% to get rid of at 3,562.56.
“The market ended lower as investors opted to take profits subsequent to the sell-off at the US markets yesterday,” Darren T. Pangan, a dealer at Timson Securities, Inc., said in a text message on Wednesday.
Dow Jones Industrial Average, S&P 500, and Nasdaq Composite indices fell 2.25 percent, 2.78 percent, and 4.11%, respectively. Nasdaq, in particular, fell into correction territory.
The decline can result from continued worries within the coronavirus outbreak and growing tensions between the US and China, Regina Capital improvement Corp. Head of Sales Luis A. Limlingan stated in a text message.
These concerns have been fanned further on the news about problems within a coronavirus vaccine on Wednesday. United Kingdom-based Astra Zeneca Plc said it’d suspended the late-stage trial of its own vaccine development after finding “unexplained illness” of its evaluations, Reuters reported.
“Philippine shares fell as concerns arose regarding the progress to the evolution of one the vaccine candidates,” Mr. Limlingan explained.
Almost all Asian stocks were at reddish land once the market closed on Wednesday.
At home, all sectoral indices at the PSE likewise ended with losses. Property fell 78.66 points or 2.82 percent to 2,709.49; financials lost 22.13 points or 1.89 percent to 1,149.00; mining and oil went down 77.98 points or 1.28 percent to 5,999.80; holding firms cut 74.12 points or 1.18% to 6,172.60; services shed 12.50 points or 0.83% to 1,478.72; and industrials dropped 62.21 points or 0.76% to 8,030.76 at the end of session.
Decliners outpaced advancers, 118 contrary to 73. A few 48 names stopped unchanged.
Australian investors were sellers, but net outflows were paid down to P543.03 million from P647.32 million on Tuesday.
Timson Securities’ Mr. Pangan explained the economy might still move upward for the remainder of the week if the increase of local coronavirus cases would slow down. The Department reported 3,281 new cases on Tuesday, forcing the entire 241,987 confirmed cases.