Market dips as global stocks fall

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Philippine stocks were marginally lower on Tuesday following the overnight slide in US and European equities as geopolitical concerns unnerved investors in the the wake of the Malaysia Airlines MH17 tragedy and the escalating conflict in the Gaza Strip.

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“With US and European equities sliding overnight, local market investors found no reason to cheer and sustain Monday’s advance into a second day,” said Justino B. Calaycay Jr., equity analyst at Accord Capital Equities Corp.

Calaycay said that the market would have fared better if investors had opted to look at the broader economic fundamentals rather than at geopolitical factors.

Jason Escartin, investment analyst at F. Yap Securities Inc., agreed with Calaycay, saying that several fund managers “anticipate funds flow movement from countries that are presently in volatile political state to better manage risks.”

The Philippine Stock Exchange index finished Tuesday’s trading down 4.94 points or 0.07 percent at 6,869.94, while the All Shares index slipped 4.20 points or 0.10 percent to 4,115.79.

The sectoral indices were mixed. Financials inched up 0.48 points or 0.03 percent to 1,651.62, while holding firms went down 7.78 points or 0.13 percent to 6,175.63.

Industrials were up 10.95 points or 0.11 percent to 10,397.50 and services added 3.4 points or 0.16 percent to 2,089.33

Mining and oil lost 221.60 points or 1.32 percent to 16,616.53 while property erased 7.55 points or 0.29 percent to 2,596.87.

Among the top-traded stocks, Metropolitan Bank and Trust Company was unchanged at P89.80 apiece.

Tuesday’s top gainers included BDO Unibank Inc. (up 0.11 percent or 10 cents at P91 apiece), Security Bank Corp. (up 0.34 percent or 40 cents at P119), International Container Terminal Services Inc. (up 0.27 percent or 30 cents at P112) and SM Investments Corp. (up 0.78 percent or P6 at P777).

Decliners included Alliance Global Group Inc. (down 2.90 percent or 80 cents at P26.75 per share), Nickel Asia Corp. (down 5.99 percent or P2.20 at P34.55), PLDT (down 0.07 percent or P2 at P3,038), Ayala Corp. (down 0.08 percent or 50 cents at P661) and Manila Electric Company (down 0.63 percent or P1.60 at P252.40).

A total of 908 million shares were traded valued at P8.112 billion. Decliners outpaced advancers 88 to 69, while 65 shares were unchanged.

Over the next few days, Calaycay said market movers would include first-half corporate earnings, inflation numbers in the first week of August, and President Aquino’s State of the Nation Address on July 28.

The overhang of politics will play an influence on the market as investors will be keeping a keen eye on developments along these lines, Calaycay said.

“The PSEi will continue to trade inside a narrow band, test the 6,900 levels while confidently holding support at 6,770 or 6,800,” he added.

On Monday, bargain-hunting after last week’s losses lifted the main index. The PSEi was up 21.81 points or 0.32 percent at 6,874.26, while the wider All Shares index was up 13.62 points or 0.33 percent at 4,119.99.

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