Shares slide on concerns over China’s tech crackdown

PHILIPPINES stocks fell for the third day in a row on Thursday due to the lack of catalysts, also following markets in the region which fell due to China’s crackdown on tech companies.

The benchmark of the Philippine Stock Exchange (PSEi) fell 18.01 points or 0.25% to close at 6,924.99 on Thursday, while the broader all-stock index rose 2.50 points or 0.05% to 4,274.66.

“The market fell for a third day in a row as catalysts that could boost optimism remain missing,” said Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financial, Inc.

“The net outflows of foreign capital on Thursday… also contributed to the decline. The exchanges remained lukewarm, ”he added. “This implies that many investors are still sitting on the sidelines awaiting convincing factors before entering the market.”

Net sales abroad climbed to 838.94 million pesos on Thursday from the 211.97 million pesos recorded the day before. Meanwhile, turnover in value reached 5.04 billion pesos with 1.36 billion issues traded on Thursday, compared to 4.46 billion pesos with 1.70 billion shares traded on Wednesday.

“This (the performance of the PSEi) is in line with the performance of Asian markets today, amid lingering concerns about China’s continued crackdown on tech giants,” the trader from Timson Securities, Inc. said Thursday. Darren Blaine T. Pangan in a separate Viber post.

Asian stocks fell to their lowest level in six weeks on Thursday as investors sold companies caught in a wave of Chinese technological crackdown, while a surprising hint of monetary easing in China raised questions about the strength of the global pandemic recovery, Reuters reported.

The MSCI index of Asian stocks outside Japan fell 1% to its lowest since late May, led by a 2.3% drop in the Hang Seng, where former darlings Tencent and Alibaba fell to their lowest level since the beginning of the year.

Shares of ride-hailing company Didi slumped 4.6% on Wednesday to place them more than a quarter below last week’s bid price, a massive sell-off erupted when China ordered the pull-out of the stores app.

Back home, most sector indices closed in the red Thursday with the exception of mining and oil which rose 65.65 points or 0.67% to 9,836.49, and services, which gained 8.50 points or 0.52% to end at 1,615.47.

Meanwhile, industrials lost 49.27 points or 0.5% to 9,635.58; real estate lost 16.72 points or 0.49% to 3,335.23; financials lost 7.41 points or 0.49% to finish at 1,495.35; and holding companies fell 9.16 points or 0.13% to 6,947.72.

The declines beat the advances, 119 to 82, while 50 names closed unchanged.

Timson Securities’ Pangan expects the PSEi to trade between 6,820 and 7,080 on Friday, while Philstocks Financial, Inc. research associate Claire T. Alviar placed her immediate support at 6,900.

“The absence of new leads and low investor participation can put the market in consolidation with a downward bias,” Ms. Alviar said in a Viber message. “Traders can also take profits on the last trading day of the week to avoid uncertainty over the weekend.” – Keren Concepcion G. Valmonte with Reuters

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