PH stocks drop on weaker US leads


Philippine shares fell on foreign-led selling driven mainly by fears of “steeper inflation in the US.”

The benchmark Philippine Stock Exchange index closed with a 0.32-percent or 25.21 points loss at 7,810.17, while the All-Shares index shed 0.34 percent or 15.41 points to end at 4,493.54.

Jason Escartin, investment analyst at online brokerage firm, said foreign net selling dragged the market down in a “sustained pullback, with bets placed on steeper inflation in the US (+0.2 percent in March, up 11.8 percent in the past 12 months).”

“Downward momentum from the release of actual Fed minutes also weighed on sentiment,” he added.

For next week, analysts said investors will look at the first-quarter gross domestic product (GDP) results due for release on May 28, as a major market catalyst, seeing 6.7 percent growth as a safe bet. Below 6.7 percent, they said, would dampen the market and tighten selling pressure in the next few days to 7,400 points.

Mining and oil, along with the services sectors, finished firmer by 0.04 percent and 0.05 percent, respectively. The other sectors declined, led by the industrial index, which lost 1.50 percent or 183.01 points.

Active losers were Universal Robina Corp., GT Capital Holdings Inc., Ayala Land Inc.,
Energy Development Corp., and Megaworld Corp., while the top gainers were Globe Telecom Inc., Alliance Global Group Inc., SM Prime Holdings Inc., and Metropolitan Bank and Trust Company. Bloomberry Resorts Corp. actively traded but ended flat.

Decliners outnumbered gainers 121 to 65, while 44 issues closed unchanged. Total volume was 742.87 million, valued at P8.16 billion.

On Thursday, the PSEi eased 0.59 percent or 46.55 points to 7,835.38, while the All- Shares index slipped 0.83 percent or 37.79 points to 4,508.95.


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