PH stocks down on bad news ahead of CPI

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A SERIES of bad news locally and abroad weighed on the benchmark PSEi Thursday, ahead of the release of May inflation data today.

The PSEi dipped by 8.02 points or 0.11 percent to 7,553.65, while the All Shares gained 8.64 points or 0.20 percent to 4,355.

Investors mainly looked at overseas leads, such as Greece’s debt issue and the US employment data, said Grace C. Cerdenia, research head at online brokerage firm 2TradeAsia.

Aristotle Reyes Jr., equities trader at UPCC Securities Corp., and Joylin Telagen, research analyst at IB Gimenez Securities Inc., both noted Thursday’s decline was led by a “combination of all the negatives” which led to continued net foreign selling.


“It’s a mix of news that brings negativity into the market, which made investors think twice,” Reyes said.

He was referring to the Greek debt concerns, tensions and fears over US interest rates, T-bill rates going up, disappointment in local government spending, slower first quarter gross domestic product, and declines in first quarter corporate results.

“It’s a wait-and see-stance. Investors are waiting for catalysts that will boost the market in the next few days,” he added.

“For tomorrow, low inflation report could boost the market. However, most investors might stay on the sidelines or cash in on gains while waiting for US non­farm payrolls and unemployment rate, and if Greece could close a deal to its creditors before the June 5 deadline,” Telagen said.

Financials and holding firms dipped on Thursday, while the rest, led by services and mining and oil that increased by 0.66 percent and 0.40 percent, respectively.

The most active stocks ended mixed. Advancers were Globe Telecom Inc., Manila Electric Company, Robinsons Retail Holdings Inc., Philippine Long Distance Telephone Company and SM Prime Holdings Inc. The losers included Ayala Corp., Ayala Land Inc., Metropolitan Bank and Trust Company, SM Investments Corp., and Universal Robina Corp.

Overall, gainers overtook losers by 100 to 71 and 51 issues were unchanged. Over 610.47 million shares valued at P6.94 billion were traded.

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