LOCAL EQUITIES dropped on the first trading day of April as investors went profit taking following weak data released last Friday.

The benchmark Philippine Stock Exchange index (PSEi) fell 1.01% or 80.62 points to close at 7,840.31 on Monday, reversing the gains from its two-day ascent last week. The broader all-shares index likewise shed 0.82% or 40.04 points to 4,824.13.

“With the trade talks still ongoing, and optimism rebounded regionally, investors became wary of the weaker bank lending data released last Friday,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said via text.

The Bangko Sentral ng Pilipinas said last week that outstanding loans grew 13.7% year on year in February, easing from January’s 15.3%. Meanwhile, domestic liquidity went up by 7.1% to P11.5 trillion, lower than the upwardly-revised 7.7% growth in January and marking its weakest growth since September 2012.

“Possible positive news arising from the trade talks, election outcome, better-than-expected growth figures and earnings may spur markets higher for the second quarter,” Mr. Limlingan said.

Meanwhile, Philstocks Financial, Inc. attributed the market’s decline to profit taking.

“The lack of fresh positive leads amid local economic growth concerns and global uncertainties fuelled the profit taking in today’s session,” the company said in a market note on Monday.

It also noted that the World Bank trimmed its forecast for Philippine economic growth to 6.4% from 6.5%, taking into account the budget impasse and the dry spell due to El Niño.

The PSEi failed to mirror the positive sentiment seen overseas. The Dow Jones Industrial Average climbed 0.82% or 211.22 points to close at 25,928.68 last Friday. The S&P 500 index rose 0.67% or 18.96 points to 2,834.40, while the Nasdaq Composite index firmed up 0.78% or 60.16 points to 7,729.32.

Markets were mostly positive in Asia, with Japan’s Nikkei 225 up 1.43% or 303.22 points to close at 21,509.03. The Hang Seng index jumped 1.76% or 510.66 points, while Shanghai Composite soared 2.58% or 79.60 points to 3,170.36.

Back home, industrials was the lone counter that posted gains, adding 0.07% or 8.86 points to 11,729.21. The rest declined, led by mining and oil which plunged 3.33% or 264.18 points to 7,666.60. Financials followed with a 1.87% or 33-point decrease to 1,729.71.

Services tumbled 1.73% or 27.90 points to 1,580.44; property slumped 0.82% or 33.87 points to 4,081.70; while holding firms slipped 0.57% or 44.38 points to 7,691.99.

Some 684.65 million issues valued at P5.53 billion switched hands, dropping from Friday’s P6.68-billion turnover after 1.70 billion names changed hands.

Decliners were almost double the advancers, 120 to 65, while 55 names were unchanged.

Foreign investors were net buyers for the eighth consecutive session with P29.07 million, although significantly lower than the previous session’s net purchases worth P1.59 billion. — Arra B. Francia

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