Stocks drop on mixed earnings, US-Iran deadlock
PHILIPPINE SHARES edged lower for a second straight day on Wednesday as investors stayed cautious amid mixed corporate results and the standoff between the United States and Iran.
The benchmark Philippine Stock Exchange index (PSEi) dropped by 0.42% or 25.20 points to close at 5,946.78, while the broader all shares index fell by 0.47% or 15.86 points to end at 3,361.13.
“The PSEi ended lower as investors adjusted positions following the MSCI Philippines Index rebalancing. Selling pressure weighed on select stocks, keeping overall market sentiment cautious,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. “Investors also remained reactive to ongoing earnings releases, driving selective trading across the market.”
“The local market extended its decline as investors deal with the uncertainties of the US-Iran situation. This comes as the two remain without a peace deal. Investors also digested local corporate results for the first quarter which have been mixed so far, some of which were dismal. Finally, investors are waiting for clues from the US-China talks,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.
US President Donald J. Trump said on Tuesday he does not think he will need China’s help to end the war with Iran, even as hopes for a lasting peace deal dwindled and Tehran tightened its grip over the Strait of Hormuz, Reuters reported.
More than one month after a tenuous ceasefire took effect, the two sides have made no progress on an agreement to end hostilities.
Iran, meanwhile, has appeared to firm up its control over the Strait of Hormuz, cutting deals with Iraq and Pakistan to ship oil and liquefied natural gas from the region, according to sources with knowledge of the matter.
Brent crude oil futures extended gains, climbing to more than $107 a barrel, as the deadlock left the Strait of Hormuz largely closed.
Most sectoral indices closed lower. Industrials slid by 1.63% or 146.03 points to 8,774.05; mining and oil sank by 1.28% or 237.99 points to 18,280.75; property dropped by 0.89% or 17.37 points to 1,919.41; services fell by 0.43% or 12.82 points to 2,933.26; and holding firms went down by 0.1% or 4.47 points to 4,451.12.
Meanwhile, financials jumped by 0.81% or 14.61 points to 1,812.55.
Market breadth was negative, with 116 losers against 73 winners, while 67 stocks were unchanged.
Value turnover fell to P7.61 billion on Wednesday with 734.05 million shares traded from the P9.45 billion with 1.22 billion issues that changed hands on Tuesday.
Net foreign buying was at P284.85 million, a turnaround from the P107.55 million in net selling in the previous session. — Alexandria Grace C. Magno with Reuters
