Stocks continued to fall on Tuesday as investors pocketed gains from last week’s rally and followed weak data on Philippine manufacturing activity.
The Philippine Stock Exchange index (PSEi) on Tuesday fell 0.62% or 39.81 points to close at 6,358.96, while the broader all-stock index fell 0.48% or 16.80 points to close at 3,462 ,67.
“The local stock market continued its decline amid continued profit-taking, while many investors were cautious and awaited the June inflation rate,” Philstocks Financial, Inc. said. research analyst Claire T. Alviar in a Viber message.
“The slight decline in the S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI), which signaled a slowdown in growth, 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, down slightly from 51.9 in May.
June was the 10e month in a row, the PMI was above 50, indicating an improvement in business conditions compared to the previous month. A reading below 50 indicates the opposite.
Meanwhile, the Philippine Statistical Authority will release June Consumer Price Index (CPI) data on Friday, July 5.
a Business a poll of 14 analysts conducted last week yielded an average estimate of 3.9% for June’s CPI, within the central bank’s expectation of 3.4-4.2% for the month.
If realized, inflation in June 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 stocks sold off as investors held on to cash as US Federal Reserve Chairman Jerome H. Powell will speak to a policy panel at the European Central Bank Forum later today. Investors will be watching closely to see what he says at the forum,” said Luis A. Limlingan, chief sales officer of Regina Capital Development Corp. Tuesday in a Viber message.
Sectoral indices closed mixed. Financials fell 1.42% or 27.45 points to 1,899.46; holdings fell 1.08% or 59.92 points to 5,461.51; and real estate fell by 0.32% or 8.12 points to 2,504.93.
Meanwhile, mining and oil rose 1.53% or 129.46 points to 8,590.55; services rose by 0.33% or 6.70 points to 1,993.56; and industrials rose 0.02% or 2.24 points to 8,983.20.
“Among index members, Century Pacific Food, Inc. first place, up 2.72% after the additional special payment of cash dividends following strong first quarter results. On the other hand, Converge ICT Solutions, Inc. the largest loss, with a decline of 4.35%,” said Ms. Alviar.
Value turnover rose to P3.94 billion on Tuesday with 422.91 million shares changing hands, up from P3.34 billion with 417.96 million shares traded on Monday.
Market breadth was negative as there were more decliners than gainers, from 110 to 65, while 48 names ended unchanged.
Net foreign sales on Tuesday amounted to P310.09 million, a reversal from Monday’s P88.92 million in net purchases. — RMDO