PSEi pares early losses to end flat before Fed, BSP

PHILIPPINE STOCKS closed nearly flat on Monday, recouping large losses seen intraday, as investors were cautious ahead of the policy meetings of the US Federal Reserve and the Bangko Sentral ng Pilipinas (BSP).

The Philippine Stock Exchange index (PSEi) slipped by 0.02% or 1.35 points to close at 6,615.16 on Monday, while the broader all shares index declined by 0.22 point to end at 3,752.51.

The PSEi pared earlier losses after it sank to a low of 6,575.07 intraday.

“Philippine shares continued to trade flat as the market began its last full trading week ahead of the holidays. For this week, the spotlight in the US is on the Federal Reserve’s interest rate decision,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“The local market inched down as investors took a cautious stance while waiting for the Federal Reserve and the Bangko Sentral ng Pilipinas’ policy meetings this week,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. The Fed will hold its last policy meeting for the year on Dec. 17-18, while the BSP’s Monetary Board will have its own review on Dec. 19.

“The PSEi exhibited softness for most part of today’s session as sluggish China economic data likely weighed on investor sentiment. Fortunately, we did see a pickup in demand late in the day, with market-on-close buying leading the index to trim most of its losses, and closing nearly flat,” Chinabank Securities Corp. Research Director Rastine Mackie D. Mercado said in an e-mail on Monday.

China’s industrial output growth quickened slightly in November, while retail sales disappointed, keeping alive calls for Beijing to ramp up consumer-focused stimulus as policy makers brace for more US trade tariffs under a second Trump administration, Reuters reported.

China’s industrial output in November grew 5.4% from a year earlier, faster than the 5.3% pace seen in October, data from the National Bureau of Statistics showed on Monday, beating expectations for a 5.3% increase in a Reuters poll. However, retail sales, a gauge of consumption, grew at its weakest pace in three months at 3% last month, much slower than a 4.8% rise seen in October. Analysts had predicted a 4.6% expansion.

Most sectoral indices declined on Monday. Mining and oil fell by 1.01% or 76.95 points to 7,526.34; industrials retreated by 0.88% or 80.57 points to 9,014.98; property dropped by 0.44% or 10.72 points to 2,424.22; and services went down by 0.25% or 5.26 points to 2,091.49.

Meanwhile, financials climbed by 0.86% or 19.55 points to 2,280.89 and holding firms went up by 0.27% or 15.62 points to 5,625.19.

Value turnover went down to P4.64 billion on Monday with 533.64 million shares exchanged from the P5.02 billion with 1.2 billion issues traded on Friday.

Decliners outnumbered advancers, 99 versus 87, while 65 names closed unchanged.

Net foreign selling went down to P495.9 million on Monday from P601.88 million on Friday.  — Ashley Erika O. Jose with Reuters