By Arra B. Francia, Reporter
THE local stock market finished the week on a negative note on the lack of new catalysts to support its upward trajectory.
The benchmark Philippine Stock Exchange index (PSEi) tumbled 0.36% or 29.41 points to close at 8,070.89 on Friday. The broader all shares index likewise dropped 0.21% or 10.25 points to 4,896.32.
“PSEi ended flat after a lack of immediate catalysts led it to close 29 points down at 8,070.89. Index also saw weakness at the start of the day due to US markets closing in the red last night,” Papa Securities Corp. Sales Associate Gabriel Jose F. Perez said in an email.
Regina Capital Development Corp. Head of Sales Luis A. Limlingan also attributed the local market’s dip to the weakness of the US markets, while noting that the PSEi paused following the local central bank’s decision to keep rates steady on Thursday.
“Philippine investors took a breather after the BSP (Bangko Sentral ng Pilipinas) meeting announcement, the eurozone growth forecast being cut and the possibility Pres. Xi and Trump not meeting,” Mr. Limlingan said in a mobile message.
Following the Monetary Board’s first policy review for the year, benchmark rates remained within the range of 4.25-5.25%, in line with market consensus.
Mr. Perez noted that investors focused on Bloomberry Resorts Corp. and Petron Corp. on Friday, following the bourse operator’s announcement of the PSEi recomposition starting on Feb. 18. Bloomberry will be the newest addition to the PSEi, while Petron will be dropped from the 30-member list.
As a result, shares in Bloomberry surged 4.33% to P12.06 each, while shares in Petron lost 6% to P7.20 apiece.
Meanwhile, weakness in markets overseas is seen to be triggered by fears that US President Donald J. Trump will not meet with Chinese President Xi Jinping before their 90-day truce ends in March.
With this, the Dow Jones Industrial Average dumped 0.87% or 220.77 points to 25,169.53. The S&P 500 index retreated 0.94% or 25.56 points to 2,706.05, while the Nasdaq Composite index plunged 1.18% or 86.93 points to 7,288.35.
Locally, all sectoral indices ended in negative territory except for the counter for holding firms, which managed to climb 0.22% or 17.69 points to 8,033.
Leading the day’s decline was the industrial sub-index, which shed 0.99% or 116.15 points to 11,678.17. Financials fell 0.56% or 10.43 points to 1,847.39; property slumped 0.26% or 10.57 points to 3,997.85; services dipped 0.03% or 0.56 points to 1,619.34; while mining and oil went down 0.002% or 0.15 points to 8,739.62.
Turnover improved to P7.81 billion after some 3.16 billion names switched hands, versus the previous session’s P7.42 billion.
Decliners outpaced advancers, 119 to 98, while 34 names ended flat.
Net foreign buying persisted for the 16th straight session at P272.66 million, albeit slower than Thursday’s P610.59 million.