Stocks down on global leads

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Philippines shares failed to ride on a favorable inflation rate in May, and closed the week in negative territory as investors cashed in on gains following the lead of negative global developments.

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The PSEi declined by 0.36 percent or 26.95 points to 7,526.70, while the All Shares decreased by 0.32 percent or 14.13 points to 4,340.87.

Although inflation was market positive, it had a slight impact on the market, said Juanis Barredo, chief technical analyst at online brokerage COL Financial Group.

“Technically, we’re kind of glued to the GDP (gross domestic product) surprise last week,” he said.

He pointed out that global markets in the US, Europe and Asia have been trading on the weak side, overpower the low inflation rate last month, Barredo added.

Inflation hit a 20-year low of 1.6 percent in May, the Philippine Statistics Office reported on Friday.

The down side is that investors aren’t necessarily open to taking more risks in the market, Barredo pointed out.

“Pessimism remained in the local equities ahead of the crucial release of US employment data. Progress over discussions on Greece’s debt payment also weighed on sentiment, especially following Wall Street’s results,” said Jason Escartin, investment analyst at online brokerage firm 2TradeAsia.com.

US markets slipped on Thursday. The Dow Jones Industrial Average slipped by 0.94 percent or 170.69 points to 17,905.58, while S&P 500 skid by 0.86 percent or 18.23 points to 2,095.84, and tech­heavy Nasdaq decreased by 0.79 percent or 40.11 points to 5,059.12.

On the Philippine Stock Exchange, only the mining and oil subsector was up 0.46 percent, with the industrials leading the decline by a nearly 1 percent loss.

The winning issues for the day were GT Capital Holdings Inc., Megaworld Corp., JG Summit Holdings Inc., Bloomberry Resorts Corp. and Security Bank, while the losers were Universal Robina Corp., SM Prime Holdings Inc., Ayala Land Inc., BDO Unibank Inc., and Philippine Long Distance Telephone Company.

Over 579.4 million shares, valued at P7.27 billion, changed hands. Losers outnumbered gainers, 81 to 71, while 53 issues were unchanged.

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