Shares go down on profit taking, lack of drivers

Shares go down on profit taking, lack of drivers

PHILIPPINE SHARES closed lower on Wednesday as investors pocketed their profits after the market’s three-day rally amid a lack of fresh leads and as the country’s outstanding debt reached another record high.

The bellwether Philippine Stock Exchange index (PSEi) dropped by 3.10 points or 0.04% to finish at 6,305.85 on Wednesday, while the broader all shares index inched down by 0.36 point or 0.01% to close at 3,351.66.

“The local bourse declined by 3.10 points to 6,305.85 as investors booked some gains after the three consecutive days of market rally. In addition, the national government’s outstanding debt, which reached a record of P14.48 trillion as of end-October, somehow weighed on sentiment,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

The National Government’s outstanding debt went up by 1.49% from P14.27 trillion as of end-September, data from the Bureau of the Treasury showed.

Year on year, the debt stock rose by 6.16% from P13.64 trillion. It also increased by 7.91% from P13.42 trillion at the end of December 2022.

“Philippine shares closed almost flat, with investors trying to get more cues from overseas that the world’s largest economy is still on an uninterrupted path to recovery,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Despite the losses in the US [overnight], the past five weeks of consecutive gains means that all three stock indexes are still on track to end the quarter and year with big gains,” he added.

Wall Street finished mixed on Tuesday after fresh employment data bolstered bets that the US Federal Reserve will cut interest rates as soon as March, Reuters reported.

The S&P 500 declined 0.06% to end the session at 4,567.18 points.

The Nasdaq gained 0.31% to 14,229.91 points, while Dow Jones Industrial Average declined 0.22% to 36,124.56 points.

“The stock market is down as 6,300 is proving to be a tough resistance. The market awaits more catalyst for 6,399 to become new support,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message.

The majority of sectoral indices closed lower on Wednesday. Financials declined by 15.63 points or 0.89% to 1,732.20; mining and oil retreated by 64.22 points or 0.65% to 9,688.55; industrials went down by 25.22 points or 0.28% to 8,803.83; and property dropped by 7.66 points or 0.27% to 2,758.22.

Meanwhile, services climbed by 14.38 points or 0.92% to 1,562.69, and holding firms rose by 17.33 points or 0.29% to 5,977.67. 

Value turnover rose to P5.67 billion on Wednesday with 345.22 million issues changing hands from the P4.01 billion with 622.4 million issues seen on Tuesday.

Decliners outnumbered advancers, 92 versus 79, while 50 names closed unchanged.

Net foreign buying stood at P378.57 million on Wednesday versus the P182.43 million in net selling logged on Tuesday. — R.M.D. Ochave with Reuters