PSEi trades in the red ahead of SONA
Philippine share prices retreated in thin trading on Monday, as investors preferred the sidelines ahead of President Rodrigo Duterte’s third State of the Nation Address (SONA).
The main PSEi lost 22.81 points or 0.31 percent to close at 7,376.80. The broader All Shares gained 6.62 points or 0.15 percent to 4,473.32.
“I think we’re just buying our time ahead of the President’s SONA ... Investors are keeping their cards close to their chest at this moment. The market wants the President to address in the podium later today ... We want to hear what the President has on his mind so we can make judgments on where to go,” Justino Calaycay, head of research at Philstocks Financial Inc., said.
Duterte was scheduled to deliver his third SONA at 4:00 p.m. on Monday, but has not started as of this posting. Most market players are waiting for his pronouncements on issues related to the economy and the business sector.
“Investors placed bets ahead of the SONA on varied expectations of what President Duterte is expected to tackle later this afternoon,” Luis Limlingan, head of sales at Regina Capital Development Corp., said.
More than 657.019 million shares, valued at P5.081 billion, changed hands. In the broader market, advancers led decliners, 92 to 88, and 51 issues were unchanged.
“Everybody’s watching the outcome of the SONA, because nobody knows exactly what the President will come out with,” said Summit Securities Inc. President Harry Liu said.
Results of a Pulse Asia showed that majority of Filipinos want Duterte to address job creation and rising prices of basic commodities.
“Market still closed lower amid SONA. Most traders held on as they await pronouncements from the President. We expect market to reflect whatever happens later,” noted Paul Michael Angelo, analyst at Regina Capital Development Corp.
Foreign funds bought P3.537 billion of shares and sold P3.341 billion for a net buying position of P195.988 million.
“Local investors seem to be waiting for SONA, while foreign funds took bulk of trades today accounting for almost 70 percent of the day's volume,” said Carlo Capacillo, senior dealer at AP Securities Inc.