Phl shares retreat on foreign selling

Philippine shares retreated on Monday to open the week in the red on continued selling by foreign funds due to uncertainties regarding the US economy after President Donald Trump failed to get healthcare reforms passed last week.

"There was net foreign selling of almost P600 million," Victor F. Felix, equity analyst at AB Capital Securities Inc., said, citing his own estimates.

"Asian markets are increasingly doubtful that US President Trump will be able to pass legislative policies or legislative reforms. That's after the Republican leaders pulled out their bill to overhaul the US healthcare," Felix noted.

The main PSEi shed 23.65 points or 0.33 percent to 7,245.97. The broader All Shares fell 6.74 points or 0.15 percent to 4,370.00

Philippine Stock Exchange data showed foreign funds bought P4.310 billion of shares, and sold P4.834 billion, for a net foreign selling of P523.802 million.

According to a Reuters report, Trump was unable to get enough support on Friday to "repeal and replace" the Obamacare health insurance reforms which he promised during the election campaign.

"Investors are increasingly doubtful about policies regarding reform, fiscal policy, increased spending. When it comes to the US ... tax reform and increased fiscal spending ... Definitely uncertainty regarding those," Felix said.