Net foreign selling weakens stocks

The stock market index closed flat yesterday after experiencing heavy foreign selling in the morning.

The benchmark Philippine Stock Exchange index ended 2.49 points lower at 7,596.15 while the broader All Shares gauge also retreated by 15.71 points to settle at 4,640.71.

The indices were a mixed bag. The mining and oil, indus- trial and holding firm were in positive zone while the services and property edged lower.

Total value turnover, meanwhile, reached P7.4 billion on negative market breadth: 124 to 62. Fifty-five issues, meanwhile, were left unchanged.

“After a weak morning wherein the index fell by as much as 132 points and looked ready to break down, the PSEi skyrocketed in the afternoon to close flat at just 2.49 points at 7,596.15. Net foreign selling, however, remained significantly high at P853 million,” Gio Perez of Papa Securities said in a comment.

Among specific issues, the biggest losers were the LT Group, (down 2.6 percent), AboitizPower (down two percent), and BPI (down 1.7 percent)

On the other hand, foreigners pushed URC to close 5.6 percent higher as it had the highest net foreign buying of P129 million.

“With the index’s strong recovery from its supposed support area (yesterday), we should watch out (today) if the upward momentum persists. Resistance area is at the higher end of its trading range at 7,900,” Perez said.