PSEi closes nearly unchanged on overseas uncertainties

The Philippine stock barometer closed nearly unchanged on Monday, albeit on a positive bias, following uncertainties from overseas markets.

The main PSEi gained 0.42 points or 0.007% to 5,909.32 at the closing bell. Meanwhile, the broader All Shares index lost 4.81 points or 0.14% to 3,548.77.

According to Regina Capital Development Corp. head of sales Luis Limlingan, Monday's close came amid uncertainty overseas, particularly in the United States, and its tensions with China.

"The PSEi closed almost without change amid uncertainty about a fresh round of fiscal stimulus from Washington and the latest update from the Sino-US tensions," he said in a mobile message.

This comes as a federal judge in China issued a preliminary injunction that effectively temporarily blocked the ban on Americans' use of Chinese-owned messaging and e-commerce application WeChat.

Analysts are also now fearing that growth and inflation could surprise on the downside in 2021, and a lack of material development on the US stimulus package is also an overhang, Reuters reported.

"Investors were on the sidelines after the US moved to expel WeChat and TikTok from US app stores starting on Sunday night though the ban has now been temporarily been put on hold," Limlingan said.

A separate report noted that China's air force over the weekend released a video showing exercises by its nuclear-capable H-6 bombers, which have been involved in many Chinese fly-bys of Taiwan.

Part of a montage showed a simulation of an H-6 attack against an airbase that, by its runway layout, appears to be the main US air force base on Guam.

More than 2.126 billion shares, valued at P4.266 billion, changed hands. Decliners led advancers, 138 to 58, and 42 issues were unchanged.—By JON VIKTOR D. CABUENAS, GMA News

Source: Peso Economics