PHL stocks fall on profit-taking after 3-day rally
PHILIPPINE STOCKS closed lower on Monday as investors pocketed their gains from the market’s three-day climb.
The benchmark Philippine Stock Exchange index (PSEi) fell by 0.92% or 60.12 points to end at 6,458.64 on Monday, while the broader all shares index dropped by 0.7% or 24.69 points to close at 3,467.24.
“The local bourse lost 60.12 points (0.92%) to 6,458.64 as investors took some gains following the market’s three consecutive days of rally. Wall Street’s performance last week, as the US May jobs report came in stronger than expected, also weighed on sentiment given tempered hopes regarding Federal Reserve’s rate cut,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.
“The PSEi plunged in [Monday’s] session, driven by stronger-than-expected US jobs data from last week, which bolstered the belief that the Fed won’t be slashing rates any time soon,” Ms. Alviar said.
The PSEi on June 4 dropped to 6,386.42 ahead of the release of May Philippine inflation data. It then rose for three straight sessions boosted by a slower-than-expected consumer price index last month, which stood at 3.9%, picking up from 3.8% in April but still within the central bank’s 2-4% annual target band.
Meanwhile, the US economy created far more jobs than expected in May and annual wage growth reaccelerated, underscoring the resilience of the labor market and reducing the likelihood the US Federal Reserve will be able to start rate cuts in September, Reuters reported.
Nonfarm payrolls increased by 272,000 jobs last month, the Labor department’s Bureau of Labor Statistics said.
“Investors are gearing up for the upcoming US inflation data release this week, with analysts anticipating that US inflation will likely remain steady quarter on quarter,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan added in a Viber message.
US May consumer and producer price index data will be released on June 12 (Wednesday) and June 13 (Thursday), respectively.
All sectoral indices closed lower on Monday. Mining and oil went down by 1.91% or 175.97 points to 9,010.41; financials declined by 1.61% or 32.41 points to 1,974.01; services retreated by 1.18% or 23.76 points to 1,988.85; property decreased by 1.07% or 26.59 points to 2,448.16; industrials gave up 0.44% or 40.88 points to close at 9,075.21; and holding firms lost 0.1% or 5.88 points to end the session at 5,655.26.
Value turnover declined to P3 billion on Monday with 282.36 million shares switching hands from the P5.05 billion with 579.61 million issues traded on Friday.
Market breadth was negative as decliners overwhelmed advancers, 109 versus 58, while 66 names were unchanged.
Net foreign selling stood at P161.4 million on Monday versus the P390.61 million in net buying recorded on Friday. — RMDO with Reuters
