PSEi corrects as US protectionism worries marts
LOCAL STOCKS traded on a mixed note, with the main index closing little unchanged, as investors await data on Philippine economic growth and digest US President Donald J. Trump’s latest move toward protectionism.
The benchmark Philippine Stock Exchange index ( PSEi) slipped 3.70 points or 0.05% to 7,370.65 on Tuesday, cutting short its rally in the previous session.
The broader all shares index, on the other hand, advanced by another 1.16 points or 0.02% to 4,427.30 during the session that witnessed 97 stocks advance against 86 names that declined, and 49 that remained unchanged.
“We saw a little correction [on Tuesday] as sentiments from the post- inaugural retreat by the DJIA (Dow Jones Industrial Average) hounded the otherwise bullish tone in the local stock market,” Frank Gerard J. Barboza, trader at AP Securities, Inc., said in a mobile phone message.
The DJIA dropped 0.14% to 19,799.85 at the end of Monday’s trading in the United States. The S&P 500 and Nasdaq likewise fell 0.27% to 2,265.20 and 0.04% to 5,552.94.
“President Trump has set in motion the fulfilment of his campaign promises — a cause for worry today as it was back then in the campaign trail,” Justino B. Calaycay, head of marketing and research at A&A Securities, Inc., said in a trading post for Tuesday after Mr. Trump formally ordered the withdrawal of the US from the Trans-Pacific Partnership.
“Regardless of how anyone considers the new White House occupant, his decisions are the realities not only the Americans, but the entire global community now faces up to and live with.”
But the negative sentiment triggered by developments in the US was tempered, with some investors looking forward to the release of Philippine gross domestic product (GDP) data on Thursday.
Most counters ended in the green, led by the services sector that surged 16.22 points or 1.13% to 1,443.82. The mining and oil group also advanced by 75.29 points or 0.61% to 12,290.32; holding firms by 23.49 points or 0.31% to 7,550.21; and industrials by 2.21 points or 0.02% to 11,176.66.
Property and financials, meanwhile, respectively dropped by 32.70 points pr 0.96% to 3,350.66 and by 2.80 points or 0.16% to 1,748.53.
Value turnover increased to P7.89 billion from P5.61 billion after 1.24 billion issues changed hands. Net foreign selling, however, rose to P822.87 million from the P142.77 million recorded in the previous session.
“Philippine stocks spent most of the day, including the entire morning session, underwater before a flow of buying activity pushed the benchmark slightly higher. There just wasn’t enough to build momentum on with the bulls eventually surrendering towards the close,” Mr. Calaycay said.
“We’d likely to tread on mixed momentum as investors await to take cue from the coming GDP data. 7,400 seems to be the bridge to cross for the market to renew its bullish fervor,” AP Securities’ Mr. Barboza said.