Philippine shares dipped on Tuesday in line with the fall in US stocks as the crisis in Ukraine continued to keep investors edgy.
“It’s all about flight to safety,” said Michael James, managing director of equity trading at Wedbush Securities.
On Monday, President Barack Obama warned that the United States was planning economic and diplomatic sanctions to “isolate” Russia if it does not reverse its incursion into Ukraine.
The Philippine Stock Exchange index (PSEi) dropped by 0.20 percent, or 12.92 points, to end at 6,394.60 on Tuesday, while the wider all-shares index slipped by 0.18 percent, or 6.86 points, to 3,851.02.
Jun Calaycay, analyst at Accord Capital Equities Inc., said the PSEi was influenced by the fall of US stocks and the crisis in Ukraine.
“The index [was]swinging between losses and gains,” he said, evidenced by investors sitting on the sidelines, “buyers waiting for a bigger pull and sellers wait for a stronger push.”
“Activity picked up after another test of support levels, again narrowing losses, but [the index]fell below 6,400 [points]after two sessions on top. It, however, failed to overturn the bears’ early lead, pulling the market down for a second straight day,” Calaycay added.
Among the sectoral indices, the property counter shed 26.27 points, or 1.07 percent, to 2,439.37, while industrials lost 71.27 points, or 0.72 percent, to 9,775.28.
Mining and oil gained 90.46 points, or 0.63 percent, to 14,485.28, while services added 7.33 points, or 0.39 percent, to 1,901.88.
Financials rose by 0.03 percent, or 0.43 points, to 1,548.95.
The day’s biggest decliners were Ayala Corp., SM Prime Holdings Inc., Universal Robina Corp. and Ayala Land Inc., while those that registered gains included Philippine Long Distance Telephone Co., BDO Unibank Inc., SM Investments Corp., Robinsons Retail Holdings Inc., Megaworld Corp. and JG Summit Holdings Inc.
Losers outnumbered gainers 90 to 66, and with 47 shares unchanged. Total value turnover reached P11.3 billion with 3 billion shares traded.
At the closing bell on Wall Street on Monday, the Dow Jones industrial average fell 154.83 points, or 0.95 percent, to 16,166.88. The broad-based S&P 500 lost 13.76 points, or 0.74 percent, to 1,845.69, while the tech-rich Nasdaq composite index declined 30.82 points, or 0.72 percent, to 4,227.30.
In Manila on Monday, the PSEi dropped 0.27 percent, or 17.47 points, to finish at 6,407.52, while the wider all-shares index shed 0.23 percent, or 8.78 points, to 3,857.88.