Stocks drop on soft world markets


The local stock market went on a downturn on Tuesday because of the “soft” United States and regional markets.

In a phone interview, Harry Liu, president of Summit Securities Inc., said that domestic equities market were influenced by external factors, mainly the downward movement of the US stock market.

He said that there were no local factors at present to influence the market, while concern over power rates was not much of a factor in the market decline on Tuesday.

“US and regional markets are soft today. As far as internal is concerned, power rates did not influence the market much,” Liu said, adding that there were no major local economic reports as of the moment to contribute to the movement of local equities.

“The US is very important [for the coming days.]It seems to be throwing on a short- to medium-term down in the market with sideways or biased to the negative side sentiment [for local shares],” he added.

The Philippine Stock Exchange index (PSEi) dropped a bit on Tuesday by 0.09 percent, or 5.11 points to 5,935.56, while the all-shares index fell by 0.20 percent, or 7.32 points to 3,621.25.

Sectoral indices ended up mixed with mining and oil, property and holding firms gaining. Mining and oil went up by 2.04 percent, or 264.56 points to 13,217.35, while property increased by 0.21 percent, or 4.73 points to 2,264.42.

Holding firms ascended as well by 0.03 percent, or 1.45 points to 5,393.62, but services plummeted by 0.03 percent, or 0.51 points to 1,879.82.

Other counters went down such as financials, which registered a 0.66-percent decrease, or 9.57 points to 1,429.75, while industrial skidded by 0.36 percent, or 32.08 points to 8,851.77.

The most actively traded shares ended mixed, with Bank of the Philippine Islands, Banco de Oro Unibank, Philippine Long Distance Telephone Co. and SM Investments ending as losers. The companies that gained include LT Group, Ayala Land Inc., DMCI Holdings, Metropolitan Bank and Trust Co. and Megaworld. Universal Robina Corp., on the other hand, ended flat.

Decliners beat advancers with 92 to 73, while 32 ended unchanged. Total volume traded accounted to 1.4 billion shares while value turnover was at P7.2 billion.

On Monday, the PSEi opened the week with a 1.67-percent gain, or 97.79 points to 5,940.67, while the wider all-shares index ascended by 0.87 percent, or 31.26 points to 3,628.57.


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