Stocks end five-day rally on lack of fresh leads
LOCAL SHARES slumped on Tuesday on a continued lack of catalysts that could boost investor sentiment.
The 30-member Philippine Stock Exchange index (PSEi) dropped 0.32% or 26.49 points to close at 8,034.09 yesterday, snapping a five-day winning streak. The all-shares index likewise fell 0.27% or 13.54 points to 4,909.
“The market closed flat again on a lack of catalysts, ending in the red by only 26 points but managing to hold above the 8,000 mark at 8,034.09. Market still seems to be on a wait-and-see mode for the G20 summit happening at the end of the month,” Papa Securities Corp. Sales Associate Gabriel Jose F. Perez said in an e-mail.
Meanwhile, Regina Capital Development Corp. Head of Sales Luis A. Limlingan attributed the market’s decline to escalating tensions between the United States and Iran.
“The dollar index sliding and Iran sanctions led investors to consolidate ahead of the window dressing this week,” Mr. Limlingan said in a text message.
US President Donald J. Trump said he will be imposing new sanctions on Iran, including on its Supreme Leader Ali Khamenei. Iran called the new sanctions “idiotic,” according to reports, saying that it has permanently closed off the path to diplomacy between the two nations.
Amid escalating tensions, Wall Street indices ended mixed on Monday. The Dow Jones Industrial Average added 0.03% or 8.41 points to 26,727.54. The S&P 500 tumbled 0.17% or 5.11 points to 2,945.35, while the Nasdaq Composite index went down 0.32% or 26.01 points to 8,005.70.
Markets were mostly lower in Asia as investors continued to wait for Mr. Trump’s meeting with Chinese President Xi Jinping. Japan’s Nikkei 225 fell 0.43% or 92.18 points to 21,193.81. The Shanghai Composite retreated 0.87% or 26.07 points to 2,982.07, while the Hang Seng index plummeted 1.28% or 365.54 points to 28,147.46.
Back home, four sectoral indices moved to positive territory, led by mining and oil which soared 2.55% or 187.66 points to 7,547.71. Industrials advanced 0.35% or 42.32 points to 11,883.76; services gained 0.19% or 3.30 points to 1,711.45; while holding firms added 0.09% or 7.62 points to 7,676.85.
In contrast, property lost 1.6% or 69.89 points to 4,293.53, while financials slipped 0.28% or 4.90 points to 1,741.43.
Some 1.20 billion issues valued at P6.58 billion switched hands, lower than Monday’s P9.05 billion.
Decliners outpaced advancers, 102 to 97, while 56 names were unchanged.
Foreign investors switched to net selling mode at P180.57 million, against the previous session’s net inflows worth P18.57 million.
“With the index continuing to hold above the 8,000 mark, bias is still to the upside with resistance at its recent high of 8,139,” Papa Securities’ Mr. Perez said.