Home Top News Stocks decline further on continued profit taking

Stocks decline further on continued profit taking

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The lobby of the Philippine Stock Exchange in Taguig City, Sept. 30, 2020. — REUTERS

STOCKS continued to decline on Tuesday as investors pocketed their gains from last week’s rally and following weak Philippine manufacturing activity data.

The Philippine Stock Exchange index (PSEi) dropped by 0.62% or 39.81 points to end at 6,358.96 on Tuesday, while the broader all shares index fell by 0.48% or 16.80 points to close at 3,462.67.

“The local bourse extended its decline amid continuous profit-taking, while many investors were cautious, waiting for the June inflation rate,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

“The slight decline in S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI), which signified a growth slowdown, weighed on sentiment,” she added.

The S&P Global Philippines Manufacturing PMI, which measures the country’s monthly factory performance, stood at 51.3 in June, slightly lower than the 51.9 reading in May.

June was the 10th consecutive month that PMI was above the 50 mark, which signals an improvement in operating conditions from the previous month. A reading below 50 indicates the opposite.

Meanwhile, the Philippine Statistics Authority will release June consumer price index (CPI) data on Friday, July 5.

A BusinessWorld poll of 14 analysts conducted last week yielded a median estimate of 3.9% for the June CPI, within the central bank’s 3.4-4.2% forecast for the month.

If realized, June inflation would match the 3.9% recorded in May. It will also be slower than the 5.4% print in the same month a year ago.

“Philippine shares were sold down, with investors keeping to cash as US Federal Reserve Chair Jerome H. Powell will speak later today before a policy panel at the European Central Bank Forum. Investors will closely monitor what he might say at the forum,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message on Tuesday.

Sectoral indices ended mixed. Financials dropped by 1.42% or 27.45 points to 1,899.46; holding firms went down by 1.08% or 59.92 points to 5,461.51; and property declined by 0.32% or 8.12 points to 2,504.93.

Meanwhile, mining and oil gained by 1.53% or 129.46 points to 8,590.55; services climbed by 0.33% or 6.70 points to 1,993.56; and industrials rose by 0.02% or 2.24 points to 8,983.20.

“Among the index members, Century Pacific Food, Inc. achieved the top spot, increasing by 2.72% following its additional special cash dividends declaration due to strong first-quarter results. On the other hand, Converge ICT Solutions, Inc. had the biggest loss, dropping by 4.35%,” Ms. Alviar said.

Value turnover rose to P3.94 billion on Tuesday with 422.91 million shares changing hands from the P3.34 billion with 417.96 million stocks traded on Monday.

Market breadth was negative as decliners outnumbered advancers, 110 to 65, while 48 names ended unchanged.

Net foreign selling stood at P310.09 million on Tuesday, a reversal of the P88.92 million in net buying on Monday. — RMDO

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