The main Philippine equities index dropped on Tuesday following US market declines as investors awaited the central bank’s interest rate decision on Thursday.
The Philippine Stock Exchange index (PSEi) slipped by 0.15 percent or 11.55 points to 7,828.94, while the All Shares index fell 0.24 percent or 10.96 points to 4,526.82.
Jonathan Ravelas, BDO chief market strategist, said in a text message that the market “took its cue” from Wall Street trading overnight, which ended in the red as the Dow Jones Industrial Average lost 11.61 points, the S&P 500 dropped 3.68 points, and the Nasdaq fell 15.44 points.
“The market just took its cue from Wall Street. With the FOMC meeting behind us and the expectations that BSP [Bangko Sentral ng Pilipinas] is likely to keep its rates unchanged, expect to see the stock market continuing to try the 7,850 level,” Ravelas said.
If the initial resistance of 7,850 was broken, he said the market could “signal further tests towards the 7,900 to 8,000 levels.”
“Philippine fundamentals remain strong. This should help support the market on its climb to 8,000. The weaker US dollar and Philippine peso also helps in attracting portfolio flows,” Ravelas said.
Only financials advanced among the sectoral counters, while the rest of the subindices retreated.
Among the most active companies during the session were Philippine Long Distance Company and Energy Development Corp. that ended flat; Metropolitan Bank and Trust Company and BDO Unibank Inc. that gained; and Ayala Land Inc., SM Investments Corp., Universal Robina Corp., Robinsons Retail Holdings Inc., Alliance Global Group Inc., and Ayala Corp. which all posted declines.
Shares traded amounted to 1.79 billion, valued at P8.9 billion. Decliners ended higher than advancers, 112 to 68, while the unchanged stood at 44.
On Monday, the bellwether PSEi gained 22.11 points or 0.28 percent to 7,840.49, while the wider All Shares added 8.47 points or 0.19 percent to 4,537.78.