Asian stocks were in a bloodbath on Monday, enough reason to pull down sensitive Philippine shares during the first trading day of the week.
After three-day break, Philippine shares went down by 0.43 percent, or 25.89 points to 6,015.30. The Philippine Stock Exchange was closed on Friday to pave way for the celebration of the Chinese New Year.
“Another slide in Aquino’s satisfaction ratings, expectations of stable money policy, and more evidence of a slower China growth provided the backdrop for the opening of February trades,” Jun Calaycay, Accord Capital Equities Corp. analyst, said.
“Friday’s fall in US and European markets and a similar trend among Asian bourses to open the week added to the tepid mood. The Nikkei closed 10 percent below the December 30 peak,” he added.
Calaycay noted that share prices edged into positive territory at the opening bell, but any measure of optimism caved under the pressure of a news cycle that ranged between negative and tepid.
“Investors are still in want of more evidence to support government’s confident bearing and outlook,” he further said.
The wider all-shares barometer also ended in the red, losing 0.53 percent, or 19.49 points to 3,656.43. For the sectors, majority ended in the negative territory except for property, which went up 0.26 percent, or 5.97 points to 2,322.71.
Services posted the most significant decrease for the day, falling by 1.04 percent, or 19.49 points to 1,856.26, while financials dipped by 0.53 percent, or 7.88 points to 1,489.95. Holding firms, on the other hand, shed 0.44 percent, or 23.72 points to 5,406.15, while industrial plummeted 0.36 percent, or 31.95 points to 8,840.46. Mining and oil lost 0.26 percent, or 36.23 points to 13,699.11.
Market activity remains slow with total value turnover ending only at P5.6 billion. Advancers lost to decliners, 50 to 99, while 50 issues were unchanged.
The top losers on Monday were Philippine Long Distance Telephone Co., Bank of the Philippine Islands, Universal Robina Corp., SM Prime Holdings Inc., SM Investments Corp., Aboitiz Power Corp., BDO Unibank Inc., DMCI Holdings Inc., Robinsons Retail Holdings Inc., Globe Telecom Inc. Aboitiz Equity Ventures Inc. and Puregold Price Club Inc.