Local equities slumped on Monday, July 16, as the market continued to consolidate within range due to lack of catalysts.
The bellwether Philippine Stock Exchange index (PSEI) snapped its four-day winning streak on Monday, dropping 0.4% or 29.74 points to 7,369.44. The broader all shares index likewise gave up 0.27% or 12.29 points to 4,462.60.
“The market is still consolidating and trying to test the 7,400. It’s range-bound between 7,400 and 7,200. So it has to test and trade within that range first, before it tests new highs. That’s the behavior of the market, it’s just consolidating,” First Metro Investment Corp. Vice President Cristina S. Ulang said in an interview at the sidelines of the company’s mid-year economic briefing in Makati City.
Regina Capital Development Corp. Managing Director Luis A. Limlingan pointed to the lack of leads on Monday, which failed to push the index past the 7,400 mark.
“Lack of catalysts remained the culprit once again, as some investors were profit taking after the release of China GDP (gross domestic product) and renewed fears of an escalating trade war. Value turnover remained weak as there were not enough leads to push the index past the 7,400 resistance,” Mr. Limlingan said in a mobile message.
The industrial counter was the lone winner among the sectoral indices, gaining 0.22% or 23 points to 10,470.73.
Holding firms led losers, shedding 0.76% or 55.20 points to 7,249.75, followed by property’s decline of 0.66% or 23.81 points to 3,589.11. Mining and oil went down 0.62% or 60.48 points to 9,659.65; services lost 0.19% or 2.72 points to 1,429.19; while financials slipped 0.11% or 1.91 points to 1,823.83.
Some 919.84 million issues switched hands valued at P4.28 billion, thinner than Friday’s P5.46-billion turnover.
Decliners outpaced advancers, 90 to 82, while 55 names were unchanged.
Foreign investors remained in selling position, as net foreign outflows accelerated to P279.31 million on Monday, higher than the previous session’s net sales of P37.78 million.
Half of the 20 most actively traded issues of the day ended in negative territory, with Ayala Land, Inc. losing 1.46% to P37.10 each. Megawide Construction Corp fell 1.75% to P19.04 each, BDO Unibank, Inc dipped 0.78% to P127.90 each, while SM Investments Corp plunged 1.64% to P901 each.
Meanwhile, shares in Metropolitan Bank & Trust Company were the most actively traded, gaining 0.43% to P69.80 each, after the company clarified that reports of a P400-million branch fraud were false. — Arra B. Francia