Philippine shares trade sideways amid pandemic worries

Philippine shares moved sideways, with the local stock barometer ending in the red on Thursday as worries over the economic impact of the COVID-19 pandemic continued to weigh on investor sentiment.

The bellwether PSEi shed 9.78 points or 0.17% to 5,921.55 at the closing bell. The broader All Shares increased by a measly 0.17 points or 0.005% to 3,544.41.

“Today’s sideways movement ended in red as pandemic and economic woes continued to weigh on investor sentiment,” Philstocks Financial senior equity analyst Japhet Tantiangco said.

“The 6.8% year-on-year decline in first seven months government revenues and the downwardly revised revenue collection target from the Bureau of Internal Revenue and Bureau of Customs for the whole year gave signs of the general economy’s weakness and its challenged outlook,” Tantiangco said.

The Philippine government’s fiscal balance swung to a deficit of P140.2 billion, bringing the January to July budget shortfall to P700.6 billion as increase in state spending exceeded collections during the period. 

Foreign funds bought P1.515 billion shares and sold P2.63 billion for a net selling position of P1.114 billion.

“Our net foreign outflows also continue to build up adding to the market’s downside. So far, we’re already on an eight-day net foreign selling streak with today’s net outflows amounting to P1.1 billion,” Tantiangco said.

More than 5.084 billion shares valued at P17.458 billion, changed hands. Advancers led decliners, 98 to 86 and 57 issues were unchanged. — RSJ, GMA News