Stocks nearly flat on lack of new leads

The market closed flat yesterday as investors continue to look for fresh leads.

The benchmark Philippine Stock Exchange index (PSEi) ended at 8,048.72, up 9.27 points or 0.11 percent while the broader All Shares index gained 2.35 points or 0.04 percent to finish at 4,871.90.

The sectoral indexes, meanwhile, were mostly up, with only the financials and industrial counters ending in negative territory.

ATR Asset Management research head Jomar Lacson said the market remains weak and bearish due to lingering concerns on inflation and expectations of higher interest rates.

“This is very much interest rate related,” he said.

He said lingering concerns on inflation and anticipation on how the Bangko Sentral ng Pilipinas would act continue to weigh down investor sentiment.

Lacson said these concerns weren’t exactly present six months ago.

Another trader from a foreign brokerage house said the market managed to stay in positive territory when most expected it to decline yesterday.

“It was expected because it’s the start of the second quarter. Investors are repositioning themselves,” she said.

Moving forward, Lacson said the market may stay weak in the coming months unless inflation is addressed.

Total value turnover, meanwhile was thin at P6.110 billion. Market breadth was negative, 104 to 98 in favor of decliners, while 45 issues were unchanged.