Phl shares slip 0.28% on global, local factors

A host of market-depressing factors kept Philippine shares largely in the red, from inflation worries to a weakening peso, higher US treasury yields, and rising global oil prices.

The benchmark PSEi lost 21.84 points or 0.28 percent to close at 7,672.28. The broader all shares slipped by 13.80 points or 0.29 percent at 4,664.94.

More than 1.306 billion shares, valued at P4.216 billion, were traded by the time the closing bell rang.

Losers led winners, 115 to 86, and 53 issues were unchanged.

“Concerns about inflation, creeping interest rates, and peso depreciation are pushing the market down,” said Astro del Castillo, president and managing director at First Grade Finance Inc.

Market sentiment is definitely not well with oil trading at $80 per barrel in global markets — a big factor that keeps the market from gaining traction and establishing an upward momentum.

“First quarter earnings have been generally unexciting, which is serving as a drag to already subdued market sentiment. The recent swing in global oil prices is ... lending greater uncertainty to inflation expectations which could further dampen consumer confidence,” said Garie Ouano, research at China Bank Securities Corp.

Brent crude futures were at $79.57 per barrel at 0310 GMT, up 27 cents, or 0.3 percent from their last close, according to a Report by Reuters. Brent broke through $80 for the first time since November 2014 on Thursday.

Definitely, oil is among the red flags from overseas adding to the risk off sentiment including the US-China trade negotiations, Del Castillo noted.

Foreign funds bought P1.720 billion worth of shares and sold P2.436 billion for a net selling position of P715.347 million.

Ouano noted foreign investors exercise a certain influence in the market.

“I’d say they’re quite influential. In recent trading days foreigners have accounted for more than half of daily value turnover,” Ouano said.