Local stocks dipped on Wall Street’s previous fall on weaker-than-expected earnings, closing lower before investors had the chance to hear President Aquino’s State of the Nation Address (SONA) on Monday.
Harry Liu, president of Summit Securities Inc., told The Manila Times in a phone interview that the market slightly pulled back following the decline in foreign equities.
“The market went down, carried by the US market’s drop. There was slight pressure,” he said. “Monday’s drop is because of the negative global market,” he added.
On Friday, the Dow Jones Industrial Average slumped 0.72 percent to 16,960.57 while the S&P 500 slipped 0.48 percent and the Nasdaq Composite slid by 0.50 percent .
Liu said that for most of Monday’s session investors were on the sidelines, waiting for the SONA to finish. He sees the market going up on Wednesday as investors react positively to the president’s speech.
“Based on what I heard from the SONA, I think there will be a positive impact. The market should have taken it positively,” he added.
Trading was suspended on Tuesday in observance of the Feast of Ramadan (Eid’l Fitr) and will resume tomorrow, July 30.
The Philippine Stock Exchange index (PSEi) slipped 39.08 points or 0.57 percent to 6,850.47 while the broader All Shares index also dipped 21.01 points or 0.51 percent to 4,108.88.
Declines were across the board. The mining and oil sector led the decliners with a 1.11-percent slump, losing 186.96 points to 16,634.68.
Financials went down 6.75 points or 0.41 percent to 1,628.33 while industrials slipped 9.14 points or 0.09 percent to 10,502.05.
Holding firms lost 42.15 points or 0.68 percent to 6,165.52; services
erased 12.14 points or 0.58 percent to 2,092.30; and property declined 21.90 points or 0.84 percent to 2,575.17.
There were only three gainers among the 10 most actively traded stocks. These were SM Investments Corp. (up 0.82 percent or P6.50 to close at P797 per share), Universal Robina Corp. (up 1.12 percent or P1.80 to end at P163 each) and Globe Telecom Inc. (up 0.11 percent or P2 to end at P1,762 apiece).
Among the top losers were Megaworld Corp. (down 2.47 percent or 12 cents to close P4.26 each), Alliance Global Group Inc. (down 3.72 percent or P1 at P25.85 per stock) and Ayala Corp. (down 0.77 percent or P5 at P647 each).
Trading volume stood at 928.47 million worth P4.557 billion.
Decliners outnumbered advancers 121 to 52, while 64 stocks did not move.
On Friday, the market ended flat, down 0.005 percent or 0.34 points to close at 6,889.55, while the All Shares index inched up 4.71 points or 0.11 percent to 4,129.89.