The Philippine stock market traded lower on Monday, reflecting sentiment on Wall Street rather than any optimism for improved trade ties with the United States despite the arrival of President Barack Obama.
Asian shares also fell earlier on earnings concerns and worries over the escalating Ukraine crisis.
The Philippine Stock Exchange index (PSEi) retreated on Monday, falling 80.75 points or 1.09 percent to 6,604.35, while the broader all shares fell 43.96 points or 1.09 percent to 3,990.20.
Miko Sayo, analyst at Nieves Securities, Inc., said the local market was largely influenced by Friday’s decline on Wall Street in the wake of poor earnings results from some of its biggest stocks.
“The market is just overbought. This is just natural profit-taking. Investors should be given a chance to take profits,” Sayo further said.
When asked if Obama’s visit would have an effect on the local equity market, Sayo only said, “It might have but not in the near term.”
“President Obama’s visit could not dictate the mood of the market unless real investments start coming in because of it,” he explained.
Overseas, Asian shares fell as investors worried about corporate earnings and the Ukraine crisis.
Except for services, which rose by 5.81 points or 0.29 percent to 1,997.96 points, the rest of the local sectoral indices ended lower. Property slid by 2.58 percent or 67.71 points to 2,560.91, while holding firms fell or 90.65 points or 1.47 percent to 6,055.32.
Industriak firms sank 113.30 points or 1.13 percent to 9,918.59, while financials went down by 16.62 points or 1.05 percent to 1,567.86. Mining and oil ended lower by 112.59 points or 0.72 Percent to 15,478.74.
Trade volume thinned to 1.2 billion shares worth P7.4 billion. Decliners overwhelmingly outnumbered advancers 127 to 54, while 37 issues were unchanged.
Some of the most actively traded stocks on Monday were Metropolitan Bank and Trust Co., down 0.60 percent at P82.50; BDO Unibank, Inc., which declined 0.17 percent to P86.95; Megaworld Corp., which retreated 3.49 percent to P4.43; Alliance Global Group, Inc., which slipped by 0.16 percent to P30.60; and Manila Electric Co., which dropped 2.00 percent to P265.00.
“The market may bounce tomorrow (Tuesday) but there’s still room for more profit-taking,” Sayo said.
On Friday the PSEi also ended lower, down 46.23 points or 0.69 percent at 6,685.10, while the broader all shares index was down 20.71 points or 0.51 percent at 4,034.16.