• PH stocks drop ahead of Trump policies

    0

    The Philippine Stock Exchange index (PSEi) retreated 1.04 percent on Friday as investors took the chance to sell and avoid “risks” before the Trump administration officially issues any policy, especially on tax reforms.

    The benchmark PSEi cut its four-day gain on, dropping 76.57 points or 1.04 percent to close at 7,258.99. The wider All Shares lost 32.19 points or 0.73 percent to end at 4,395.08.

    “Investors took risk-off selling ahead of Donald Trump’s economic policy announcement, and possible interest rate hike during the Fed meeting next month,” Joylin Telagen, equity analyst at IB Gimenez Securities Inc., said in a text message.

    Luis Limlingan, managing director of Regina Capital Development Corp., said investors were spooked by the impact of a tax reform in the US after the new Treasury Secretary Steven Mnuchin said he wants to see “very significant” tax reform passed before Congress’ August recess.

    In the next few weeks, the market will continue to trade with a cautious stance and “with downward bias,” Telagen said, noting the PSEi might retest the 7,000 level.

    Among the sectoral indices, the Mining and Oil sector incurred the biggest loss, down 2.87 percent.

    SM Prime Holdings Inc. and Metro Pacific Investments Corp. registered gains, while Semirara Mining and Power Corp., Ayala Land Inc. and SM Investments Corp. closed in the red.

    More than 976.5 million shares were traded, valued at P6.4 billion. Decliners outpaced advancers, 113 versus 71, while 51 issues closed unchanged.

    On Thursday, the PSEi was up 0.42 percent or 31.11 points at 7,335.56, while the All Shares rose by 0.35 percent or 15.56 points to 4,427.27.

    Share.
    loading...
    Loading...

    Please follow our commenting guidelines.

    Comments are closed.