Stock Market

By Krista Angela M. Montealegre, Senor Reporter

Stocks lose steam

Posted on March 05, 2016

THE STOCK MARKET scored gains for the week even as its rally lost steam yesterday ahead of the release of the US jobs data and a meeting of China’s lawmakers who will draft an economic plan for the next five years.

The benchmark Philippine Stock Exchange index (PSEi) dropped 64.37 points or 0.92% to close at 6,899.07. The local barometer rose 1.89% for the week.

The all-shares index slid 21.61 points or 0.54% to finish at 3,986.66. The broader index registered a weekly gain of 2.07%.

“We saw a mixture of profit-taking and investors staying on the sidelines ahead of the release of the US jobs data and the convention in China,” Victor F. Felix, equity analyst at AB Capital Securities, Inc., said in a telephone interview.

Before Friday’s slump, the composite index was riding on a three-day winning streak backed by foreign inflows that pushed the stock market to positive territory for the year on Thursday. Year to date, the PSEi is back in the negative zone, with a loss of 0.76%.

“Investors cashed in gains ahead of important US jobs report and China’s meeting this weekend,” Joylin F. Telagen, equity analyst at IB Gimenez Securities, said in a mobile phone message yesterday.

Markets are awaiting cues from the US non-farm payrolls data that may influence the timing of the next interest rate hike of the Federal Reserve.

Moreover, China’s parliament -- the National People’s Congress -- convenes on Saturday to work on the country’s next five-year economic program.

Services fell 19.57 points or 1.37% to 1,406.16; holding firms declined 74.99 points or 1.10% to 6,767.79; property went down 25.40 points or 0.89% to 2,821.63; and industrial shed 40.87 points or 0.36% to 11,385.63.

In contrast, mining and oil shot up 228.58 points or 2.11% to 11,082.83 and financials edged up by a nearly flat 0.07 of a point or 0.005% to 1,506.40.

Value turnover eased to P6.94 billion after 1.46 billion shares changed hands, from Thursday’s P8.94 billion.

Advancers beat decliners, 90 to 83, while 42 issues were unchanged.

Foreigners moved to selling territory for the first time in four sessions, resulting in net sales of P396.28 million -- a reversal of the net purchases of P850.71 million in the prior session.