Local shares post losses on negative sentiment

local shares post losses on negative sentiment - Local shares post losses on negative sentiment

By Denise A. Valdez, Senior Reporter

THE PHILIPPINE Stock Exchange index (PSEi) fell for the third consecutive day on Wednesday as activity was focused on non-PSEi members and investor sentiment was pulled down by global events.

The main index dropped 42.76 points or 0.72% to close at 5,867.88, while the broader all shares index lost 15.83 points or 0.44% to 3,527.90.

“Investors continue to focus on second-liners, while those holding PSEi issues continue to close positions, anticipating a further sell-off once third quarter GDP (gross domestic product) numbers are reported,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an email.

Dito CME Holdings Corp. was among the most actively traded stocks on Wednesday, dropping 15.27% to P5.77 apiece. The stock has moved within a high of P8.05 and a low of P3.21 in the past 30 days.

ABS-CBN Corp. also ended Wednesday’s session as the biggest gainer, hitting its 50% growth ceiling after news it would start airing on public TV through Channel 11.

Among the 30 PSEi members, only seven stocks closed with gains, while four ended flat and the rest posted losses.

“We may see the PSEi recover once it tests support at 5,800,” Mr. Mangun said.

The drag on the main index was also driven by net foreign selling, which shot up to P1.29 billion from P863.7 million in the last session. Foreign investors have been posting net outflows for 19 straight days.

“The PSEi continued to fall after President Donald Trump said he would end negotiations on a new fiscal stimulus package, sending jitters into investors who hoped Washington lawmakers would strike a deal soon,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.

Wall Street ended lower on Tuesday. The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite indices dropped 1.34%, 1.40% and 1.57%, respectively.

“Also on the local front, worries on supply chain bottlenecks, continued presence of African Swine fever, imposition of localized lockdowns and onset of La Niña weather pattern, (which) may pose upside risks to prices due to supply constraints,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message.

Sectoral indices closed mixed on Wednesday. Mining and oil rose 225.92 points or 3.86% to 6,065.19 and financials climbed 4.23 points or 0.36% to 1,157.76.

On the other hand, services declined 29.09 points or 1.98% to 1,433.92; property shed 20.52 points or 0.74% to 2,731.62; holding firms slid 32.80 points or 0.53% to 6,100.24; and industrials trimmed 19.35 points or 0.24% to 7,818.39 at the close of session.

Some 1.81 billion issues valued at P7.11 billion switched hands on Wednesday, down from 2.09 billion issues valued at P8.08 billion the previous day.

Advancers outnumbered decliners, 101 against 92. Some 48 names ended unchanged.

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