PH shares weaken on China data, Greek woes

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Philippine stocks ended Tuesday’s trade lower on thin volume as many investors kept to the sidelines waiting for fresh impetus while the long-running Greek debt saga provided no lead for the day.

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China’s weak manufacturing data for the fourth month in a row in June also weighed on trading.

The Philippine Stock Exchange index (PSEi) shed 0.76 percent or 57.58 points to finish at 7,551.56, while the All Shares index slipped 0.64 percent or 27.82 points to 4,332.70.

“Market players remained on the sidelines as they awaited fresh leads. Rising concerns that the government is still not spending [enough]could mean weaker second-quarter GDP numbers,” BDO Chief Market Strategist Jonathan Ravelas said.

Jason Bibit, equity analyst at Regina Capital Development Corp., attributed the low turnout not only to the lack of participation by some investors who stayed on the sidelines but also to the psychological effect of China’s weak manufacturing data for June, according to a survey by British banking giant HSBC.

“The low volume in the last two days also suggests that investors are still waiting for a clear resolution to Greece’s debt issues. EU [European Union] just gave Greece 48 hours to finalize a deal with its creditors,” he said, adding: “We advise traders to sell on rallies and buy only when the index breaks resistance at 7,690.”

Industrials led the sectoral declines with a 1.47 percent loss.

Overall trade volume reached 744.587 million shares, valued at P6.06 billion. Declines outnumbered advancers 92 to 70, while 50 issues finished unchanged.

On Monday, the main PSEi inched up 0.11 percent or 7.97 points to end at 7,609.14, while the All Shares index firmed 0.21 percent or 9.13 points to 4,360.52.

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