Index inches lower on last-minute profit taking
THE BELLWETHER INDEX inched lower on Tuesday due to last-minute profit taking and faster-than-expected July inflation.
The Philippine Stock Exchange index (PSEi) slipped by 0.02% or 1.49 points to end at 6,433.24 on Tuesday, while the broader all shares index rose by 0.12% or 4.47 points to finish at 3,520.94.
“The local bourse inched down… as investors took profits at the last minute. The market was initially trading in the green due to bargain hunting after Monday’s steep decline. However, a surge of last-minute profit taking pushed the market into negative territory,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.
Wall Street’s decline overnight due to US recession fears and the pickup in Philippine headline inflation last month clouded investor sentiment, Mr. Plopenio said.
“Philippine shares ended with flat performance despite a strong rebound early morning as the investors continue to monitor economic data in both US and Japan especially for signs of a global recession,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Major US stock indexes ended sharply lower on Monday as US recession worries shook global markets and drove investors out of risky assets, Reuters reported. The recession concerns followed weak economic data last week, including Friday’s soft US payrolls report.
The S&P 500 lost 160.23 points or 3% to end at 5,186.33 points; while the Nasdaq Composite lost 576.08 points or 3.43% to 16,200.08. The Dow Jones Industrial Average fell 1,033.99 points or 2.6% to 38,703.27.
Meanwhile, headline inflation accelerated to a nine-month high of 4.4% in July from 3.7% in June, the Philippine Statistics Authority reported on Tuesday.
This was slower than the 4.7% print in the same month a year ago and was within the Bangko Sentral ng Pilipinas’ (BSP) 4%-4.8% forecast for the month.
However, this was higher than the 4% median estimate in a BusinessWorld poll of 15 analysts conducted last week and was the fastest in nine months or since the 4.9% clip in October 2023.
For the first seven months, inflation averaged 3.7%, above the BSP’s 3.3% forecast for the year.
Sectoral indices were mixed on Tuesday. Mining and oil dropped by 1.75% or 143.46 points to 8,024.09; industrials retreated by 0.54% or 47.92 points to 8,801.81; and financials went down by 0.15% or 3.11 points to 1,963.28.
Meanwhile, property increased by 0.6% or 14.99 points to 2,508.59; services rose by 0.38% or 7.58 points to 1,983.42; and holding firms went up by 0.09% or 5.44 points to 5,627.89.
Value turnover dropped to P5.12 billion on Tuesday with 419.01 million shares changing hands from the P5.64 billion with 638.56 million issues traded on Monday.
Decliners outnumbered advancers, 97 versus 84, while 56 names were unchanged.
Net foreign selling climbed to P635.78 million on Tuesday from P621.93 million on Monday. — R.M.D. Ochave with Reuters