PSE index slips as shares mostly move sideways
THE MAIN INDEX inched lower on Thursday, with trading mostly range-bound before the long weekend and as players sold index stocks.
The benchmark Philippine Stock Exchange index (PSEi) slipped by 0.02% or 1.77 points to close at 6,376.79, while the broader all shares index rose by 0.28% or 10.64 points to 3,779.22.
Philippine markets are closed on Friday (June 6) in observance of Eid al-Adha or the Feast of Sacrifice.
“This Thursday, the PSEi saw sideways movement and closed in the negative territory… The market’s marginal decline is attributed mainly to the selling of index heavyweights such as SM Investments Corp., Manila Electric Co., and BDO Unibank, Inc.,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.
“Philippine and US equities delivered a mixed performance, weighed down by the weakest private sector hiring in two years, tepid payroll gains, and a slipping dollar, all fueling investor caution,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. “Price action was fairly muted given that the May consumer price index (CPI) came in within many analysts’ expectations.”
Philippine headline inflation eased to 1.3% in May from 1.4% in April and 3.9% in the same month last year due to lower utilities and transport costs. This marked the lowest CPI in over five years or since the 1.2% logged in November 2019.
This matched the median estimate in a BusinessWorld poll of 17 analysts conducted last week.
Almost all sectoral indices closed higher on Thursday. Property increased by 1.1% or 25.09 points to 2,289.40; services rose by 0.63% or 13.86 points to 2,203.86; holding firms went up by 0.42% or 22.88 points to 5,438.94; mining and oil climbed by 0.18% or 18.70 points to 9,889.52; and industrials inched up by 0.06% or 5.79 points to 8,953.75.
Meanwhile, financials declined by 1.11% or 26.53 points to 2,349.74.
“Sector indices were mostly up with the property taking the lead. Banks were the only losers. The move of both sectors can be attributed to expectations of an aggressive policy easing by the BSP (Bangko Sentral ng Pilipinas) following our slow inflation print in May,” Mr. Tantiangco said. “Lower interest rates may boost property demand but may also put pressure on banks’ margins.”
“Of the index members, Alliance Global Group, Inc. closed on top, jumping 11.22% to P9.32. China Banking Corp. was at the tail end, plunging 9.13% to P65.70,” he added.
Value turnover inched up to P6.31 billion on Thursday with 912.52 million shares exchanged from the P6.3 billion with 739.87 million issues traded on Wednesday.
Decliners edged out advancers, 101 versus 100, while 48 names were unchanged.
Net foreign buying was at P85.99 million on Thursday versus the P129.6 million in net selling recorded on Wednesday. — Revin Mikhael D. Ochave
