Shares go down as market waits for fresh leads
PHILIPPINE SHARES declined on Monday as the market stayed on the sidelines ahead of the release of November US consumer inflation data, which could affect the US Federal Reserve’s policy decision next week.
The bellwether Philippine Stock Exchange index (PSEi) fell by 0.72% or 48.57 points to close at 6,680.57 on Monday, while the broader all shares index dropped by 0.35% or 13.57 points to 3,777.11.
“Philippine shares slid back once again below 6,700 as the spotlight on the US this week for the consumer price index report scheduled for release on Wednesday,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“Notably, Federal Reserve officials are observing a blackout period ahead of the December Federal Open Market Committee meeting, so no comments on monetary policy are expected,” he added.
The Fed is widely expected to deliver another 25 basis points (bps) at their Dec. 17-18 policy meeting. This would bring the fed funds rate to the 4.25%-4.5% range.
The US central bank in September kicked off its easing cycle with an outsized 50-bp cut and followed it up with a 25-bp reduction at its November review.
First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message that investors stayed on the sidelines and opted for higher-yielding assets like government securities amid market volatility.
“The local market declined as investors took a cautious stance while waiting for fresh positive catalysts. The peso’s depreciation during the day, closing below the 58 level versus the US dollar again, also weighed on the bourse,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
The peso closed at P58.01 per dollar on Monday, weakening by 27.50 centavos from its P57.735 finish on Friday, Bankers Association of the Philippines data showed.
Majority of sectoral indices declined on Monday. Holding firms sank by 2.33% or 135.78 points to 5,669.59; property went down by 1.09% or 27.63 points to 2,485.76; mining and oil retreated by 0.21% or 15.96 points to 7,488.97; and industrials decreased by 0.17% or 16.13 points to 9,153.09.
Meanwhile, services rose by 0.47% or 9.91 points to 2,104.63 and financials climbed by 0.3% or 6.83 points to 2,258.37.
“Semirara Mining and Power Corp. was the top index gainer, climbing 2.54% to P34.25. SM Investments Corp. was the worst index performer, dropping 3.83% to P880,” Mr. Tantiangco said.
Value turnover rose to P8.54 billion on Monday with 3.32 billion shares traded from the P5.71 billion with 861.2 million issues that changed hands on Friday.
Decliners beat advancers, 103 versus 77, while 62 names were unchanged.
Net foreign selling declined to P122.5 million on Monday from P419.73 million on Friday. — Revin Mikhael D. Ochave
