STOCKS dropped for the third straight session on Monday, sending the bellwether index back to the 6,200 level, amid the lack of fresh leads and concerns regarding the Philippine economy’s growth outlook.
The Philippine Stock Exchange index (PSEi) sank by 1.34% or 85.02 points to close at 6,254.36, while the broader all shares index went down by 0.85% or 32.16 points to 3,735.25.
“The local market opened the week on a negative tone as the lack of fresh positive leads allowed worries over the local economy’s outlook to take over sentiment,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.
“Investors are concerned on how the local economy could accelerate its growth amid lingering global economic uncertainties caused primarily by the United States’ protectionist policies,” Mr. Tantiangco added.
Philippine gross domestic product (GDP) expanded by 5.5% in the April-to-June period, slightly faster than the 5.4% growth in the first quarter but slower than the 6.5% expansion in the second quarter last year. This matched the lower end of the government’s 5.5%-6.5% growth target for this year.
For the first half, GDP growth averaged 5.4%, slightly below the government’s goal. Economic Secretary Arsenio M. Balisacan last week said the economy must grow by 5.6% this semester to hit the low end of the full-year target and by 7.5% to reach the upper end.
“The market was largely driven by selling pressure today, with prices seemingly stalled as investors wait for a new catalyst to emerge after the PSEi rebalancing last Friday,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“With most companies having already released their second quarter earnings, attention may now shift to the upcoming US inflation data, which could shape the Federal Reserve’s next policy direction,” he added.
July US consumer inflation data will be released on Aug. 12 (Tuesday).
On Friday, the PSE announced the inclusion of Tanco-led digital entertainment provider DigiPlus Interactive Corp. into the PSEi starting Aug. 18, replacing Razon-led integrated resorts operator Bloomberry Resorts Corp.
Almost all sectoral indices closed lower on Monday. Financials sank by 2.3% or 50.39 points to 2,132.21; property dropped by 1.97% or 48.41 points to 2,408.30; industrials declined by 0.91% or 82.61 points to 8,911.90; holding firms retreated by 0.85% or 44.62 points to 5,199.57; and mining and oil decreased by 0.2% or 18.82 points to 9,263.62.
Meanwhile, services went up by 0.19% or 4.59 points to 2,319.54.
Value turnover went down to P7.1 billion on Monday with 908.82 million shares traded from P7.25 billion with 1.42 billion shares exchanged on Friday.
Decliners outnumbered advancers, 141 versus 70, while 41 names were unchanged.
Net foreign buying increased to P421.37 million on Monday from P37.65 million on Friday. — Revin Mikhael D. Ochave
