The local stock market ended flat as profit-taking offset the strong performance of the telecommunications sector.
The main index shed 1.62 points or 0.02 percent to close at 6,820.53 with only the Services and Mining and Oil counters advancing.
Volume rose to 2.48 billion shares worth P9.06 billion as losers outnumbered gainers 102 to 94 with 53 unchanged.
“Philippine shares closed flat as strong corporate earnings overseas overshadowed worries over the pace of economic recovery and the spread of the Delta variant,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He noted that, “Investors are once again coming into tech stocks as COVID-19 cases rise… In the Philippines, this could be seen in the recent buyup of telco stocks GLO, TEL and CNVRG.”
Philstocks Financial Research and Engagement Officer Claire Alviar said “Last-minute profit-taking pulled the market down after the sharp rally yesterday.”
She added that, “intraday, the PSEi was trading in the green led by the rally of telco stocks with Globe Telecom, Inc., PLDT Inc., and Converge ICT Solutions, Inc. gaining 13.38 percent, 7.73 percent, and 4.38 percent, respectively.”
AAA Equities Head of Research Chris Mangun said “The PSEi ended flat despite another incredible day for blue chip telco issues, GLO and TEL. The double-digit percentage gains in Telco issues were not enough to carry the entire index higher because of its smaller weighting.”
He explained that, “Telco valuations are finally reflecting the fact that it was the strongest sector and benefited from lockdowns and work-from-home structures as margins on mobile and home internet are greater than corporate lines.”
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