PHILIPPINE SHARES dropped on Monday, pulling the main index back to the 6,200 level, as the market mostly moved sideways due to the absence of new trading drivers.
The benchmark Philippine Stock Exchange index (PSEi) dropped by 0.42% or 27.05 points to close at 6,288.88, while the broader all shares index fell by 0.27% or 10.12 points to 3,741.11.
“The local market’s sideways movement closed in the negative territory as investors sold off shares amid the lack of fresh leads,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message. “Trading was anemic… reflecting poor investors’ confidence towards the market amid the lack of a catalyst.”
“The PSEi closed at 6,288.88, down by 0.42%, as the market appears to be experiencing some profit taking from names that increased last week. Moreover, on a broader scale, the market seems to be in a consolidation phase, with investors likely waiting for more news before taking clearer directions,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that the local bourse dropped to track the decline seen on Wall Street on Friday.
US shares were down as investors assessed mixed data to gauge the US Federal Reserve’s monetary policy path this year, Reuters reported.
The central bank last lowered borrowing costs in December and said US tariffs could add to price pressures. However, recent labor market weakness and signs that tariff-induced inflation was yet to reflect in headline consumer prices have made investors confident of a potential dovish move next month.
On Aug. 15, the S&P 500 dropped by 0.29% or 18.74 points to 6,449.80; and the Nasdaq Composite index retreated by 0.4% or 87.69 points to 21,622.98; while the Dow Jones Industrial Average index rose by 0.08% or 34.86 points to 44,946.12.
Sectoral indices closed mixed on Monday. Financials sank by 1.45% or 31.40 points to 2,122.36; holding firms decreased by 0.31% or 16.90 points to 5,285.59; and property went down by 0.18% or 4.50 points to 2,412.32.
Meanwhile, mining and oil rose by 3.39% or 314.86 points to 9,587.25; industrials climbed by 0.15% or 14.41 points to 9,066.32; and services went up by 0.15% or 3.47 points to 2,274.83.
“San Miguel Corp. was the day’s index leader, jumping 9.81% to P61. Converge ICT Solutions, Inc. was the main index laggard, falling 3.33% to P14.50,” Mr. Tantiangco said.
Value turnover went down to P6.18 billion on Monday with 746.65 million shares traded from the P10.35 billion with 1.55 billion shares exchanged on Friday.
Decliners bested advancers, 105 versus 85, while 63 names were unchanged.
Net foreign buying was at P252.17 million on Monday, a turnaround from P514.88 million in net selling recorded on Friday. — Revin Mikhael D. Ochave with Reuters
