Shares decline as uncertainties hang over market

LOCAL STOCKS dropped anew on Tuesday as the market consolidated and with investors choosing to remain on the sidelines amid continued uncertainties here and abroad.

The Philippine Stock Exchange index (PSEi) slipped by 0.43% or 31.76 points to close at 7,262.64 on Tuesday.

The all shares index likewise went down by 0.26% or 11.83 points to 4,385.77.

“There’s a lack of volume in the market as a whole,” said Harry G. Liu, president of Summit Securities, Inc. “Definitely [the market] is showing signs of a mediumterm consolidation, waiting for further fundamentals to set in.”

Trading value eased to P6.59 billion on Tuesday, down from the P8.22 billion seen the other day, as 3.85 billion shares changed hands.

Mr. Liu said investors are looking at fundamentals, such as prospects on companies’ yearend reports, interest rate stability and the situation in the US after Donald J. Trump assumed the presidency.

“Investors have been watching these factors in the last few weeks,” he said.

Locally, the market is also looking at economic developments, including the Duterte administration’s infrastructure initiatives.

“Of course, the mining sector has its problems for the moment but the solution is to come up with the correct measures,” he said. “Even the Secretary of Finance is helping out, trying to make sure that a win-win situation is brought about.”

After days of decline, the mining and oil sub-index inched up by 0.21% or 26.06 points yesterday to finish at 11,907.65. Services and industrials were the other gainers, going up by 0.25% and 0.21% to finish at 1,428.63 and 11,193.94, respectively.

Holding firms led the decliners with a 0.84% retreat or 62.41 points to 7,315.21. Financials slipped 0.32% or 5.76 points to 1,763.50 and property dropped 0.20% or 6.89 points to 3,341.99.

Net foreign selling persisted, although it fell to P326.57 million yesterday from Monday’s P373.20 million.

Market breadth was negative as decliners outnumbered advancers, 108 to 93, while 42 names closed the session flat.

“If the fundamental factors are positive, then we will see higher levels in due time,” Mr. Liu said. “Earnings should be coming out between February and March.”

2TradeAsia. com said: “We might see some profit-taking, as most investors bank on results from local headlines before taking into large positions for today. Immediate support is 7,200, resistance at 7,340.”

Most Southeast Asian stock markets fell on Tuesday, tracking US equities, as lack of details on Mr. Trump’s economic policies pushed investors away from riskier assets.

Asian shares also eased as economic and political fears sent investors seeking shelter in the yen, while forecasts China’s foreign exchange reserves have fallen for a seventh month added to jitters.