PSEi slips as US markets slump after weak data
PHILIPPINE STOCKS dropped further on Wednesday as sentiment turned negative after Wall Street posted losses overnight due to weak US economic data.
The bellwether Philippine Stock Exchange index (PSEi) inched down by 0.01% or 0.80 point to close at 6,882.12 on Wednesday, while the broader all shares index slipped by 0.03% or 1.26 points to end at 3,729.52.
“The local market closed in negative territory this Wednesday. The negative spillovers from Wall Street amid renewed concerns over the US economy’s health weighed on the market,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “The local bourse fell as low as 6,759.93 intraday but had its losses trimmed on the back of bargain hunting.”
“Philippine shares managed to recoup earlier losses after falling approximated 120 points to finish virtually the same as [Tuesday] session. Earlier in the morning, investors were rattled after US stocks tumbled on Tuesday as technology shares struggled, and fresh economic data reignited concerns about the economy’s health,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
US stocks slumped on Tuesday, at the start of one of the market’s historically worst months, ahead of data likely to influence how much the US Federal Reserve will lower interest rates, Reuters reported.
The benchmark S&P 500 index, Nasdaq Composite Index, and the Dow Jones Industrial Average recorded their biggest daily percentage declines since early August. The Dow fell 626.15 points or 1.51% to 40,936.93; the S&P 500 dropped 119.47 points or 2.12% to 5,528.93; and the Nasdaq Composite slid 577.33 points or 3.26% to 17,136.30.
Market sentiment weakened as Institute for Supply Management data on Tuesday showed US manufacturing remained subdued despite a modest improvement in August from an eight-month low in July.
Philippine shares mostly moved sideways before the release of August Philippine inflation data on Sept. 5 (Thursday), Mr. Limlingan added.
A BusinessWorld poll of 15 analysts yielded a median estimate of 3.7% for August inflation, within the 3.2-4% forecast of the Bangko Sentral ng Pilipinas.
Sectoral indices were mixed. Industrials dropped by 1.02% or 94.74 points to 9,160.12; services retreated by 0.19% or 4.32 points to 2,169.35; and holding firms went down by 0.09% or 5.33 points to 5,739.21.
Meanwhile, financials rose by 0.98% or 20.80 points to 2,126.68; mining and oil went up by 0.28% or 22.89 points to 8,038.90; and property climbed by 0.1% or 2.79 points to 2,787.19.
Value turnover rose to P5.56 billion on Wednesday with 653.58 million shares changing hands from P5.08 billion with 699.6 million issues traded on Tuesday.
Decliners beat advancers, 113 versus 76, while 54 names were unchanged.
Net foreign buying rose to P145.73 million on Wednesday from P20.57 million on Tuesday. — R.M.D. Ochave with Reuters