SHARE prices on the Philippine Stock Exchange resumed trading on a soft note Thursday, the first trading session of 2020, as investors chose China over the Philippines amid the recent monetary easing of the Chinese central bank.
The bellwether PSEi shed 72.73 points or .93 percent to 7,742.53 at the closing bell. The broader All Shares lost 30.92 points or .67 percent to 4,618.75.
Financial markets were closed on Dec. 30, 2019, Dec. 31, 2019, and Jan. 1, 2020 in observance of regular holidays Rizal Day, New Year’s Eve and New Year’s Day.
“Investors flocked to China as the PBOC (People’s Bank of China) reduced the required reserve ratio by 50 basis points, effective Jan. 6, releasing more than 800 billion yuan of long-term liquidity to the banking sector,” Regina Capital Development head of sales Luis Limlingan said.
“Technically, the RRR (reserve requirement ratio) cut will help smooth liquidity conditions with the upcoming tax payment season in the second half of January and the Spring Festival period… Given the sudden announcement, both Chinese and Hong Kong markets traded higher, while regional counterparts including the Philippines ended the first day of the year lower,” Limlingan said.
More than 945.642 million shares valued at P4.484 billion, changed hands. Decliners led advancers, 111 to 60, and 66 issues were unchanged. (GMA News)
