PHL shares extend slide as Wall Street rally fizzles
THE MAIN INDEX slid to the 6,700 level on Wednesday, closing lower for the sixth consecutive day, as Wall Street’s weak performance and mixed corporate earnings dampened sentiment.
The Philippine Stock Exchange index (PSEi) dropped by 1.4% or 95.78 points to close at 6,714.33 on Wednesday, while the broader all shares index fell by 0.73% or 27.88 points to end at 3,792.46.
This was a fresh near three-month low for the PSEi as this was its worst finish since it ended at 6,692.91 on Aug. 15.
“Along with Asian markets, the local bourse dropped as investors continued to assess the US election results. Wall Street’s negative performance overnight also spilled over into the local market,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message. “At home, local investors were also assessing third-quarter earnings performance. So far, results have been mixed: some sectors, like banking, are still posting impressive growth, while others, such as leisure, are showing dismal results.”
Wall Street’s three major indexes closed lower on Tuesday as investors booked some profits from a post-election rally and waited anxiously for US inflation data due this week, Reuters reported.
The indexes had rallied to record highs since the Nov. 5 US election as investors bet on a boost to equities from President-elect Donald J. Trump’s proposed tax cuts and the prospect of easier regulatory policies.
But investor enthusiasm dampened on Tuesday with concerns around whether the next US administration’s policies would exacerbate inflation. On investors’ radar is consumer price inflation data, followed by producer price inflation and retail sales data, as these could provide clues about the US Federal Reserve’s policy path going forward.
The Dow Jones Industrial Average fell 382.15 points or 0.86% to 43,910.98; the S&P 500 lost 17.36 points or 0.29% to 5,983.99; and the Nasdaq Composite lost 17.36 points or 0.09% to 19,281.40.
“Philippine shares continued to nosedive following the pullback in US as the major indexes paused from their recent post-election rally. Investors are now shifting focus to key inflation data… These indicators follow the Fed’s recent decision to cut interest rates,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan added in a Viber message.
All sectoral indices closed lower on Wednesday. Financials declined by 1.83% or 41.06 points to 2,193.14; industrials dropped by 1.79% or 169.91 points to 9,295.36; holding firms retreated by 1.32% or 77.57 points to 5,759.67; services went down by 0.84% or 17.66 points to 2,071.66; property sank by 0.63% or 16.48 points to 2,573.66; and mining and oil gave up 0.34% or 27.37 points to end at 8,002.18.
Value turnover surged to P6.94 billion on Wednesday with 592.15 million shares changing hands from the P5.59 billion with 622.73 million issues traded on Tuesday.
Decliners outnumbered advancers, 140 versus 66, while 48 names were unchanged.
Net foreign selling rose to P1.2 billion on Wednesday from P1.11 billion on Tuesday. — R.M.D. Ochave with Reuters
