Home Stock Market PSEi ends lower on profit taking, Wall Street’s drop
PSEi ends lower on profit taking, Wall Street’s drop
Philippine shares ended lower on Wednesday due to profit taking and losses on Wall Street amid the release of a gloomy US consumer confidence index report.
The benchmark Philippine Stock Exchange index (PSEi) declined by 42.22 points or 0.66% to close at 6,303.19 on Wednesday, while the broader all shares index gave up 11.56 points or 0.34% to end at 3,389.12.
“Philippine shares gave up early-session gains following a disappointing US consumer confidence index reading,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message on Wednesday.
“The local bourse pulled back this Wednesday as investors took profits from its preceding three-day rally. Concerns over the decline in consumer confidence of major economies [also] weighed on market sentiment,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
First Metro Investment Corp. Head of Research Cristina S. Ulang added that the market is on a “sell on rally” as investors are quick to take profit on recent gains.
Wall Street closed sharply lower in a broad sell-off on Tuesday as dire consumer confidence data dampened investor optimism and fueled worries over recession and the looming earnings season, Reuters reported.
The S&P and the Nasdaq fell about 2% and 3% respectively, with Apple, Inc., Microsoft Corp. and Amazon.com weighing the heaviest. The blue-chip Dow shed about 1.6%.
US consumer confidence dropped to a 16-month low in June as worries about high inflation left consumers to anticipate that the economy would slow significantly or even slide into recession in the second half of the year.
Back home, sectoral indices ended split on Wednesday. Property sank by 62.83 points or 2.14% to 2,867.64; financials dropped by 9.68 points or 0.65% to 1,473.43; and holding firms lost 24.04 points or 0.40% to end at 5,922.66.
Meanwhile, mining and oil went up by 98.16 points or 0.88% to 11,134.46; services rose by 4.50 points or 0.26% to 1,715.38; and industrials gained 5.34 points or 0.05% to close at 9,043.56.
Decliners narrowly beat advancers, 98 versus 97, while 45 names ended unchanged.
Value turnover fell to P4.91 billion on Wednesday with 532.42 million shares changing hands from the P7.46 billion with 847.09 million issues seen on Tuesday.
Net foreign selling grew to P645.8 million from the P157.91 million seen the previous trading day.
Regina Capital’s Mr. Limlingan said investors will be focused on semester-end window dressing and the inauguration of President-elect Ferdinand “Bongbong” R. Marcos, Jr. to close trading for this month on Thursday. — Luisa Maria Jacinta C. Jocson with Reuters