PSEi slips as stocks consolidate anew after climb

THE MARKET opened the week in negative territory as shares consolidated following last week’s strong performance.

The bellwether Philippine Stock Exchange index ( PSEi) went down 0.66% or 53.42 points to 8,018.05 on Monday.

The broader all-shares index also dropped 0.49% or 23.74 points to 4,766.86.

“Philippine markets eased substantially on the last day of July after a strong performance for the month overall,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile phone message on Monday.

The PSEi breached the 8,000 mark last week following President Rodrigo R. Duterte’s second State of the Nation Address and also buoyed by the US Federal Reserve’s decision to keep rates steady.

“Technically this is still good, but we will have to observe the market consolidate at these levels,” Manuel Antonio G. Lisbona, president of PNB Securities, Inc., said in a text message yesterday.

Regina Capital’s Mr. Limlingan noted that the International Monetary Fund’s ( IMF) comments last Friday on the US dollar being overvalued by 10% to 20% — based on US near- term economic fundamentals — may have also affected market sentiment.

The IMF’s External Sector Report — an annual assessment of currencies and external surpluses and deficits of major economies — showed that external current account deficits were becoming more concentrated in certain advanced economies such as the United States and Britain, while surpluses remained persistent in China and Germany.

Of the sectoral indices, only industrials ended in the green on Monday, climbing 0.19% or 21.62 points to 11,146.20.

On the other hand, services slumped 1.79% or 30.61 points to 1,676.47; property fell 1.22% or 47.10 points to 3,798.97; mining and oil dropped 0.46% or 60.43 points to 12,875.78; holding firms went down 0.42% or 33.88 points to 7,993.88; and financials slid 0.27% or 5.48 points to 1,969.05.

Decliners also outnumbered advancers yesterday at 129 to 74, while 53 names closed unchanged.

Value turnover climbed to P7.93 billion on Monday from Friday’s P6.42 billion, with 1.41 billion issues changing hands.

Foreigners turned sellers, with net outflows recorded at P94.41 million yesterday, a turnaround from Friday’s net purchases worth P632.39 million.

Most Southeast Asian stock markets were likewise subdued on Monday as investors were cautious ahead of a raft of economic data, while yet another missile test by North Korea caused brief jitters.

Indonesia is expected to release this week July inflation and gross domestic product numbers, Thailand and Philippines inflation rates for July, and Malaysia its trade data for June.

Singapore shares slipped 0.3%. Indonesian shares rose marginally.

Thai shares fell as much as 0.5% to their lowest in nearly two week. —