THE Philippine Stock Exchange index (PSEi) moved down yesterday due to profit taking and worries over the collapse of talks for a German majority coalition.
The all-shares index, meanwhile, finished at 4,851.68, down 20.07 points or 0.41%.
“In the absence of a strong market catalyst within the country, I guess [yesterday]’s negative close is just another day of profit taking for the local investors with ALI (Ayala Land, Inc.), SMPH (SM Prime Holdings, Inc.), TEL (PLDT, Inc.) and 13 more blue-chip stocks dragging the index lower by 32.79 points versus yesterday’s closing level,” Jervin S. de Celis, equities trader at Timson Securities, Inc., said in a text message.
Coalition talks for forming the next German government collapsed, after the Free Democratic Party walked out of negotiations with Angela Merkel’s Christian Democrats, its sister party, the Christian Social Union, and the Green Party, creating a current vacuum in the government of Europe’s strongest economy.
The German chancellor then said she would rather go and call new elections rather than form a minority government.
“Though Philippine markets seemed more affected, US stock market indexes followed global equities higher on Monday as investors appeared to shrug off earlier worries about political uncertainty in Germany, returning their focus to corporate earnings and prospects for tax cuts. European stocks finished higher, with German equities recovering following the collapse of talks to form a coalition government for the eurozone’s largest economy,” Luis A. Limlingan, managing director at Regina Capital Development Corp., said in a text message.
US stocks rose on Monday, with Verizon boosting the telecoms sector after the stock got an upgrade, while a deal in semiconductors lifted high-performing tech shares.
With no major earnings or economic data scheduled this week, trading volumes were thin and expected to get even quieter leading up to the Thanksgiving holiday on Thursday and an early market close on Friday.
The Dow Jones Industrial Average rose 72.09 points or 0.31% to 23,430.33; the S&P 500 gained 3.29 points or 0.13% to 2,582.14; and the Nasdaq Composite added 7.92 points or 0.12% to 6,790.71.
Among the sectoral indices, only financials gained, closing at 2,087.13, up by 2.34 points or 0.11%.
Industrials closed at 10,922.05, down 79.35 points or 0.72%; holding firms at 8,424.76, down 31.73 points or 0.37%; services at 1,635.50, down 4.69 points or 0.28%; mining and oil at 12,092.16, down 27.55 points or 0.22%; and property at 3,826.58, down 38.62 points or 0.99%.
Total volume traded was 1.94 billion, while total value was P7.18 billion, up from Monday’s P5.6 billion.
Decliners outnumbered gainers, 124 to 78, while 48 names remained unchanged.
Foreigners turned sellers, with net outflows standing at P269.10 million, a reversal of Monday’s net buying worth P294.42 million. — PPCM with Reuters