By Arra B. Francia, Reporter
THE MAIN INDEX moved further down the 7,700 level yesterday amid a lack of fresh catalysts that could boost investor sentiment.
The 30-company Philippine Stock Exchange index (PSEi) plunged 1.13% or 88.39 points to close at 7,708.72 on Monday, extending losses seen in the previous session. The broader all-shares index likewise dropped 0.76% or 37.04 points to 4,780.18.
“PSEi continued to drop on a lack of catalysts and a transition to net foreign selling,” Papa Securities Corp. Sales Associate Gabriel Jose F. Perez said in an e-mail.
Foreign investors turned sellers with net outflows of P273.48 million on Monday, snapping their three-day net buying streak which ended at P60.09 million last Friday.
“A lack of catalysts continues to keep investors on the sidelines. Even foreign investors took money off the table again today,” Eagle Equities, Inc. Research Head Christopher John Mangun said in an e-mail on Monday.
“There are a few companies that are bucking the trend and continue to rise despite the dismal performance. This trend may continue in the following days. The strategy is to watch out for the outliers,” Mr. Mangun added.
The list of 20 most actively traded stocks showed only five gainers, while there were 12 decliners and three unchanged. Shares that advanced include San Miguel Food & Beverage, Inc. (up 2.54%) and Alliance Global Group, Inc. (up 2.46%).
The PSEi followed the negative sentiment seen in Wall Street indices last Friday. The Dow Jones Industrial Average went down for the fifth consecutive session by 0.09% or 22.99 points to 25,450.24, marking its longest losing streak since June 2018. The S&P 500 index declined 0.21% or 5.86 points to 2,743.07, while the Nasdaq Composite index edged lower by 0.18% or 13.32 points to 7,408.14.
Markets overseas have been reacting to fears of a global economic slowdown, following a disappointing US jobs report and lower Chinese exports data last week. The European Central Bank likewise cut growth its forecasts for 2019.
Back home, all sectoral indices ended in negative territory, led by mining and oil which fell 1.67% or 136.22 points to 8,002.93. Industrials shed 1.51% or 175.41 points to 11,404.98; holding firms declined 1.51% or 118.04 points to 7,680.72; financials went down 1.44% or 25.39 points to 1,735.47; services dipped 0.31% or 4.94 points to 1,545.70; and property declined 0.07% or 3.11 points to 3,942.57.
Turnover was slim at P5.48 billion after some 692.47 million issues switched hands. However, this was still higher than the previous session’s P5.30 billion.
Decliners were more than double the advancers, 128 to 63, while 47 names were unchanged.
“Erratic net foreign inflows, coupled with more weakness in US markets could dampen sentiment moving forward,” Papa Securities’ Mr. Perez said.