Philippine shares ended the week on a soft note, with sentiment weighed down by bets on a yield rate hike in the US later this year, on top of the long weekend for the All Saints’ Day holidays.
The benchmark PSEi closed down 0.54-percent or 40.34-point at 7,404.80. The wider All Shares fell 0.47 percent or 20.72 points to 4,398.58.
Investors were sidelined on the heels of negative trading in the US and regional markets, cautious about investing ahead of the long weekend, Justino Calaycay Jr. of A&A Securities Inc. said.
The market is also waiting for more third-quarter corporate results, and the November 8 US elections, Calaycay said.
“The $24-billion Chinese bacon brought home by the President didn’t stir much enthusiasm from the stock market. It remains to be seen if an equally-sized Japanese ‘bacon’ will. With the market going into an extended weekend however, investors simply opted to sit-out the weekend month-ending session Friday,” Calaycay noted.
On Thursday, it was reported that President Rodrigo Duterte has bagged $19 billion worth of financial grants from his state visit in Japan this week.
Calaycay said it didn’t boost the market. Investors were mostly concerned about the corporate earnings and the Philippine gross domestic product (GDP) report in November.
“By next week, attention should shift to third quarter corporate earnings narrative, and at least temporarily, a respite from the uncertainties arising from the country’s diplomatic pivot towards the ‘East.’ Further down the road, sometime late November, the all-important third quarter GDP will provide the benchmark for the Duterte administration, and quite possibly, the investment outlook,” Calaycay said.
The holding firms counter was the sole gainer among the sectoral indices, with the financials index losing 1.23 percent.
Among the actively traded stocks were Universal Robina Corp. and GT Capital Holdings Inc. on the winning side, while the loser included Metrobank, Ayala Land Inc., Ayala Corp., Megawide Construction Corp., and PLDT Inc.
Over 1.67 billion shares were traded, valued at P9,09 billion. Losers outweighed winners, 117 to 66, while 44 issues were unchanged.
On Thursday, the PSEi went up by 0.66 percent or 49.27 points at 7,445.14, while the All Shares also gained 0.51 percent or 22.59 points at 4,419.30.