Philippine shares slipped on Tuesday as investors turned cautious ahead of the release of inflation data later this week although the main index managed to stay above the 6,800-point mark.
In a phone interview, First Grade Finance Inc. managing director Astro del Castillo said the market was “flat and directionless” because everyone wanted to play safe ahead of the June inflation data.
The government is set to announce the June inflation numbers on Friday, July 4.
“Even on the regional side, the inflation data of other markets are also starting to spike up and this could put pressure on interest rates,” Del Castillo said.
The Philippine Stock Exchange index (PSEi) slipped by 17.70 points or 0.26 percent to 6,826.61, while the wider all shares shed 9.79 points or 0.24 percent to 4,096.49.
“The market is still on a correction mode after hitting the 6,900-mark, but I expect it to be a brief correction before we break that level again,” Miko Sayo, analyst at Nieves Securities Inc., said in a text message.
Only the financial sub-index ended in the green, adding 2.56 points or 0.16 percent to end at 1,634.03.
Among the decliners, holding firms lost 31.59 points or 0.51 percent to 6,211.58 and services dropped 7.18 points or 0.35 percent to 2,044.61.
Mining and oil fell 52.70 points or 0.32 percent to 16,488.76, while property went down by 5.46 points or 0.21 percent to 2,602.14. Industrials dipped by 9.22 points or 0.09 percent to 10,336.01.
A total of 1.9 billion shares were traded on Tuesday, valued at P4.9 billion. Decliners beat advancers 101 to 75, while 41 stocks were unchanged.
Some of the most actively traded stocks were BDO Unibank Inc., down 0.53 percent at P93; Philippine Long Distance Telephone Co., down 0.13 percent at P2,984; Ayala Land Inc., up 0.33 percent at P30.60; and SM Investments Corp., down 1.41 percent at P804.50.
The top gainer on Tuesday was BHI Holdings Inc., whose share price surged nearly 50 percent to P1,237.
In a letter to the stock exchange, the company said it was “not aware of any material information that may affect the value and trading of BH shares.”
On Monday, local shares barely budged in the absence of strong leads, although the main index managed to finish in positive territory after meeting stiff resistance at the 6,870-points level. The benchmark index inched up just 2.16 points or 0.03 percent to 6,844.31, while the wider all shares added 2.49 points or 0.06 percent to 4,106.28.
MADELAINE B. MIRAFLOR