Philippine shares fell on Tuesday in cautious trading as investors cashed in early gains ahead of Thursday’s monetary policy meeting of the Bangko Sentral ng Pilipinas and developments overseas.
The Philippine Stock Exchange index (PSEi) lost 64.33 points or 1.01 percent to end at 6,336.34, while the wider all-shares dipped 0.84 percent, or 32.49 points to 3,829.24.
The BSP has been giving hints of possible tightening amid rising liquidity and inflation, although most analysts believe the monetary authority will keep its key policy rates steady for now.
“Asia-Pacific markets struggled with only the New Zealand, Taiwan and Shanghai shares posting gains. The rest of the region is covered in red, weighed [down]by less-than-expected manufacturing numbers from the US. The reactions, however, are tempered with only Philippine shares dropping more than 1.0 percent,” Accord Capital Equities Corp. analyst Jun Calaycay said.
But he noted that the impact of slower US manufacturing was partially offset by the stable pace of hiring.
Meanwhile, European markets were dragged down by concerns over Crimea and China’s slowing economy, Calaycay added.
All the sectoral indices ended in the red, with financials registering the largest drop, plummeting 20.98 points or 1.37 percent to 1,512.77, followed by mining and oil, which slid 19.91 points or 0.82 percent to 2,407.31.
Holding firms were down 64.95 points or 1.11 percent at 5,786.36 while industrials slipped 107.56 points or 1.09 percent to 9,748.35
Property lost 19.91 points or 0.82 percent to 2,407.31, while services retreated 5.95 points or 0.31 percent to 1,908.81.
Trade volume was 870 million shares valued at P6.7 billion. Decliners outpaced advancers 117 to 40.
The top losers were DMCI Holdings, Inc. (P69 per share), Universal Robina Corp. (P138.20), Bank of the Philippine Islands (P86), Aboitiz Power Corp. (P37.40), SM Investment Corp. (P700), Globe Telecom, Inc. (P1,640), Ayala Land, Inc. (P28.45), Energy Development Corp. (P5.60), GT Capital Holdings, Inc. (P801.50), Semirara Mining Corp. (P381), SM Prime Holdings, Inc. (P14.52), and Ayala Corp. (P558).
On Monday, Philippine shares rebounded from three days of losses, with the PSEi ending up 61.41 points or 0.97 percent at 6,400.67, while the broader all shares index inched up 21.46 points or 0.56 percent to 3,891.73.