Philippine shares slip on profit taking, weak peso
PHILIPPINE SHARES dropped anew on Tuesday due to profit taking and a weak peso, with investors also staying on the sidelines before the release of August Philippine inflation data.
The Philippine Stock Exchange index (PSEi) dropped by 0.58% or 40.49 points to end at 6,882.92 on Tuesday, while the broader all shares index fell by 0.55% or 20.63 points to close at 3,730.78.
“The local market declined this Tuesday as investors took profits after a two-day climb. The local currency’s depreciation against the dollar also weighed on the market,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
“Trading has been tepid as investors continue to wait for catalysts, primarily the Philippines’ August inflation data to be released this week,” he added.
The peso closed at P56.61 per dollar on Tuesday, slumping by 23 centavos from its P56.38 finish on Monday, according to Bankers Association of the Philippines data.
This was the local unit’s worst finish in more than two weeks or since it ended at P56.64 against the greenback on Aug. 19.
Meanwhile, the Philippine Statistics Authority will release August inflation data on Thursday (Sept. 5).
A BusinessWorld poll of 15 analysts yielded a median estimate of 3.7% for the August consumer price index, within the central bank’s 3.2-4% forecast for the month.
“Philippine shares slipped into the red as investor await the return of foreign funds after the US was on holiday for the Labor Day weekend. US stock futures held steady Monday night as traders braced for a potentially challenging September after a volatile August,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“With markets closed for Labor Day, focus shifts to Friday’s August jobs report. Historically, September has been the worst month for the S&P 500 over the past decade,” he added.
Most sectoral indices closed lower on Tuesday, with holding firms being the lone gainer, rising by 0.11% or 6.54 points to 5,744.54.
Meanwhile, services dropped by 1.23% or 27.07 points to 2,173.67; financials declined by 0.77% or 16.54 points to 2,105.88; industrials went down by 0.6% or 55.85 points to 9,254.86; property decreased by 0.36% or 10.2 points to 2,784.40; and mining and oil retreated by 0.29% or 23.57 points to 8,016.01.
“Century Pacific Food, Inc. was the top index gainer, climbing 1.38% to P36.70. Wilcon Depot, Inc. was the main index loser, dropping 3.53% to P17.50,” Mr. Tantiangco said.
Value turnover rose to P5.08 billion on Tuesday with 699.6 million shares switching hands from the P4.89 billion with 555.41 million issues traded on Monday.
Decliners beat advancers, 109 versus 83, while 52 names were unchanged.
Net foreign buying dropped to P20.57 million on Tuesday from P419.29 million on Monday. — R.M.D. Ochave