Shares drop in thin trade ahead of SONA, Fed
THE BELLWETHER INDEX ended lower on Monday in thin trade ahead of the President Ferdinand “Bongbong” R. Marcos, Jr.’s first State of the Nation Address (SONA) on Monday and the US Federal Reserve’s policy meeting.
The Philippine Stock Exchange index (PSEi) went down by 53.86 points or 0.86% to close at 6,209.53 on Monday, while the broader all shares index declined by 21.29 points or 0.63% to 3,359.77.
“Philippine shares started the last trading week of July quietly, as stateside will have a busy week ahead, both on the earnings and economic data front,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“The local bourse declined by 53.86 points [or] 0.86% to 6,209.53 as most investors are in a wait-and-see mode while waiting for President Marcos’ first State of the Nation Address and the Federal Reserve’s meeting this week,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.
“All sectors were in the red, led by the banks, declining 2.79%. This was dragged by the 4.62% drop of BDO Unibank, Inc. following its issuance of default notice to Udenna Corp.,” Ms. Alviar added.
Shares of companies under Dennis A. Uy-led Udenna Group also posted declines on Monday but managed to recoup their losses at the market’s close. Chelsea Logistics and Infrastructure Holdings Corp. lost 0.15 point or 11.81% to end at P1.12 each, DITO CME Holdings Corp. decreased by 0.14 point or 3.43% to P3.94, and PH Resorts Group Holdings, Inc. inched down by 0.02 point or 2.5% to P0.78.
The majority of sectoral indices ended in the red on Monday except for property, which went up by 22.25 points or 0.79% to 2,821.06, and mining and oil, which increased by 6.43 points or 0.05% to 11,255.39.
Meanwhile, financials declined by 41.88 points or 2.78% to 1,460.53; services dropped by 26.80 points or 1.63% to 1,615.62; industrials decreased by 77.28 points or 0.82% to 9,316.92; and holding firms lost 21.99 points or 0.37% to end Monday’s session at 5,870.67.
Decliners outnumbered advancers, 114 versus 61, while 47 names closed unchanged.
Value turnover climbed to P4.3 billion on Monday with 517.72 million shares changing hands from the P3.29 billion with 604.04 million issues seen the previous trading day.
Net foreign selling climbed to P690.95 million from the P146.35 million seen the previous trading day.
Regina Capital’s Mr. Limlingan said the market is waiting for the second-quarter earnings reports of companies such as Microsoft Corp., Apple, Inc. and Meta Platforms. He placed the PSEi’s support at 6,100 and resistance at 6,400.
Meanwhile, AP Securities Inc. Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message that the market will also monitor the US second-quarter gross domestic product estimate to be released on Thursday. He put the PSEi’s support at 6,000 and resistance at 6,400. — Justine Irish D. Tabile
