PSEi ends flat on renewed concerns over ‘Brexit’
THE MAIN INDEX failed to break out of negative territory, as reports about the United Kingdom pursuing its exit from the European Union (EU) triggered a sell-off in markets across the region.
The Philippine Stock Exchange index ( PSEi) closed at 7,238.45 on Monday — just 0.07 point below its 7,238.52 finish on Friday — after investors shifted to a selling position in the afternoon session.
The broader all shares index, on the other hand, managed to remain in the green toward the closing bell. The measure settled 4.04 points or 0.09% higher at 4,364.87.
“The PSEi fell flat after being up most of the day as investors were waiting for the biggest market in the US to resume due to the extended holiday (Martin Luther King Day),” Luis A. Limlingan, head of business development at Regina Capital Development Corp., said in a mobile phone message.
“In addition, some late sell-off was triggered by the pound falling against the dollar, dropping below $1.20 for the first time since October’s flash crash, after reports said UK Prime Minister Theresa May will signal plans to quit the EU single market to regain control of Britain’s borders and laws.”
Most sectors posted losses, with the industrials sub-index shedding 77.44 points or 0.69% to 11,128.38. Financials also declined by 10.56 points or 0.60% to 1,737.06; services by 5.52 points or 0.39% to 1,381.49; and mining and oil by 28.24 points or 0.23% to 12,210.02.
The property and holding firms counters bucked the descent, closing higher by 41.66 points or 1.28% to 3,293.33 and 9.05 points or 0.12% to 7,382.65, respectively.
Aside from renewed concerns over the possible impact of Britain’s separation from the EU, investors took into account the retail sales report from the US and the annual exports data from China last Friday, Mr. Limlingan said.
Retail sales in the US increased 0.6% in December, driven by stronger demand for motor vehicles. The improvement reflects a boost in consumer confidence after the US election, Mr. Limlingan noted.
Meanwhile, exports from China dropped for the second consecutive time in 2016. The reading posted a 7.7% decline — the worst since the global crisis in 2009 — raising concerns about the economy’s health.
Value turnover further declined to P4.47 billion after 3.19 billion issues exchanged hands, from the P5.37 billion registered last Friday. Advancers and decliners were even at 94, while 46 issues were unchanged.
Foreign investors extended their net selling position to a second day, withdrawing P247.65 million more than what they channeled to the market. This adds to the P340.39 million net foreign sales booked in the previous session.
The market is expected to witness thin trades, as some investors prefer to wait on the sidelines ahead of the inauguration of billionaire Donald J. Trump as the 45th president of the United States on Jan. 20, according to 2TradeAsia. com.