Philippine shares shake off US govt shutdown

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Feared that it will be dragged down by the decline in Wall Street from to US government shutdown, Philippine shares somehow managed to come up with a different scenario after staging a slight recovery from Monday’s nearly 200-point meltdown.

However, Philippine shares erased gains from the early hours of Tuesday’s trade because of the same issue.

Elizabeth Abadillo, analyst at Angping and Associates Securities Inc., said that the market was somehow influenced by the effects of the United States government shutdown news. However, it still managed to end in a positive note.

Overall, Abadillo indicated that Philippine shares won a modest recovery on Tuesday due to local and corporate leads.


The Philippine Stock Exchange index (PSEi) gained, albeit slightly, by 0.10 percent or 6.04 points to 6,197.84, while the broader all-shares index went up by 0.14 percent or 5.26 points to 3,763.49.

“Prior to Monday’s rout, the PSEi appears to have found a “stable” trading range between 6,270 and 6,490, with the looming prospect of a budget stalemate in the US serving as the impetus to pull the measure past the lower end of the band,” Jun Calaycay, Accord Capital Equities Corp. analyst, said.

Likewise, services and property both managed to end in the green after the rest of the sectoral indices dipped modestly to the red side.

Services gained a bit by 0.45 percent, or 8.90 points to end at 2,002.23, while property ended a few points higher by 8.35 points or by 0.35 percent to 2,377.77.

Mining and oil, on the other hand, went down by 1.02 percent or 124.90 points to 12,125.79, followed by industrial, which shed 0.18 percent or 16.28 points to 9,165.66. Financials and holding firms both ended flat.

Meanwhile, losers still prevailed over gainers, 83 to 57, with the total value of the traded shares ending lower at P7.8 billion.

Some of the most actively traded stocks were Manila Electric Co., Alliance Global Group Inc., Universal Robina Corp., Ayala Land Inc., JG Summit Holdings Inc., and SM Prime Holdings Inc.

This week’s trading kicked off a sudden decline of the benchmark index to the 6,100-point level, still caused by the US budget and debt ceiling issues.

Madelaine B. Miraflor

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