By Arra B. Francia, Reporter
SHARES TREKKED lower on Wednesday due to thin trading, while also weighed down by the weakness of markets abroad.
The bellwether Philippine Stock Exchange index fell 0.39% or 29.70 points to close at 7,450.01 on the first trading session after Christmas break. The broader all- shares index likewise dropped 0.25% or 11.66 points to 4,489.92.
“As expected, it was a dull and quiet day for the market… The index initially experienced weakness in the morning due to negativity from the plunge of US markets over the long weekend, but steadily rose throughout the day,” Papa Securities Corp. Sales Associate Gabriel Jose F. Perez said in an e-mail.
Regina Capital Development Corp. Managing Director Luis A. Limlingan noted that the PSEi managed to temper losses compared to markets in the United States yesterday.
“Philippine shares traded in the red, albeit to a lesser extent than the rest of Asia and the US as the federal government partially shut down after Congress failed to pass spending legislation,” Mr. Limlingan said in a mobile phone message.
Wall Street’s major indices suffered a bloodbath on Christmas eve, with the Dow Jones Industrial Average closing 2.91% or 653.17 points lower to 21,792.20. The S&P 500 index retreated 2.71% or 65.52 points to 2,351.10, while the Nasdaq Composite index plunged 2.21% or 140.08 points to 6,192.92.
Investors abroad are concerned about the health of the US economy, in addition to US President Donald J. Trump’s criticism that the Federal Reserve is hiking interest rates too rapidly.
Most Southeast Asian stock markets also fell tracking their global peers on Wednesday, with Singapore taking the maximum hit, as continued concerns over political uncertainty in the US prompted investors to steer clear of riskier assets.
Back home, four sectoral indices ended in negative territory, led by the industrials sector which shed 0.89% or 98.8 points to 10,911.74. Services slipped 0.83% or 12.11 points to 1,438.44; holding firms slipped 0.7% or 52.06 points to 7,316.86, while financials went down 0.02% or 0.37 point to 1,755.91.
Meanwhile, the mining and oil counter soared 2.93% or 233.06 points to 8,176.61. Property also gained 0.25% or 9.05 points to 3,629.87.
Turnover slimmed to P3.39 billion after some 771.52 million issues switched hands, less than half of the P7.1-billion turnover seen last Friday.
Net foreign selling rose to P766.43 million from the previous session’s P480.63-million outflow.
Papa Securities’ Mr. Perez said placed the index’s initial support at around 7,350, noting that the PSEi may continue to be hindered by negative sentiment abroad as well as net foreign selling.
“Furthermore, we might see more of the quiet trading we’ve seen [on Wednesday] in the next two days with the upcoming holidays,” Mr. Perez said. — with Reuters