PHL shares inch down after Wall Street sell-off
PHILIPPINE SHARES slipped on Monday following the sell-off in US markets on Friday due to tariff concerns and as investors looked for fresh catalysts.
The bellwether Philippine Stock Exchange index (PSEi) inched down by 0.03% or 2.07 points to close at 6,095.97 on Monday, while the broader all shares index declined by 0.14% or 5.28 points to end at 3,655.
“Philippine shares got off to a muted start, as the RRR (reserve requirement ratio) cut decision of the Bangko Sentral ng Pilipinas was offset by the selloff in the US last Friday,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Seedbox Securities, Inc. Equity Trader Jayniel Carl S. Manuel said in a Viber message that the PSEi edged down as turnover was “modest.” Value turnover declined to P4.47 billion on Monday with 1.38 million shares traded from the P4.71 billion with 1.69 million issues that changed hands on Friday.
“The country’s exit from the Financial Action Task Force’s grey list provided a positive macro backdrop, reflecting progress in anti-money laundering and counter-terrorism financing efforts… However, the market is likely to remain range-bound in the short term as investors weigh ongoing economic factors and corporate performances,” Mr. Manuel said.
US stocks tumbled on Friday, extending their selloff in the wake of dour economic reports and closing the book on a holiday-shortened week fraught with new tariff threats and worries of softening consumer demand, Reuters reported.
Last week, US President Donald J. Trump said he will soon announce new tariffs covering lumber and forest products, in addition to previously announced plans to impose duties on imported cars, semiconductors and pharmaceuticals.
The Dow Jones Industrial Average fell 748.63 points or 1.69% to 43,428.02; the S&P 500 lost 104.39 points or 1.71% to 6,013.13; and the Nasdaq Composite lost 438.36 points or 2.20% to 19,524.01.
Mr. Limlingan said investors are awaiting fresh leads, including the release of US personal consumption expenditures data this week, which could affect the US Federal Reserve’s policy outlook.
“Several Fed officials are also scheduled to speak, potentially providing further insights on monetary policy. Locally, investors are anticipating the release of the latest trade balance and budget balance data, which could offer clues about the country’s fiscal and external position,” he said.
Most sectoral indices ended in the red. Industrials dropped by 0.87% or 76.76 points to 8,748.45; services went down by 0.86% or 17.17 points to 1,964.13; property declined by 0.72% or 16.29 points to 2,216.93; and mining and oil slipped by 0.05% or 4.49 points to 8,274.25.
Meanwhile, financials rose by 0.86% or 19.53 points to 2,286.16 and holding firms went up by 0.40% or 20.59 points to 5,129.78.
Decliners outnumbered advancers, 111 versus 73, while 54 names closed unchanged.
Net foreign selling went down to P632.57 million on Monday from P423.38 million on Friday. — S.J. Talavera with Reuters
