Stocks end week in the red on US market dip

0

Local stocks declined for the second day in a row Friday, capping off the week with a loss after taking a cue from downturns in overseas markets.

Advertisements

After staying positive in morning trade, the Philippine Stock Exchange index (PSEi) finished down 0.70 percent or 49.81 points at 7,050.89, while the All Shares index slipped 0.85 percent or 35.65 points to 4,170.01.

The major US markets were down overnight as the Dow Jones ended with a 0.25-percent decrease, the S&P 500 lost 0.17 percent, and the Nasdaq registered a 0.26-percent decline.

“After trading at 15-month highs and at one point even drawing excitement as it approached the 7,200-mark, the PSEI closed the holiday shortened-week below 7,100,” Justino Calaycay of Accord Capital Equities Corp. said.

“US stocks fell overnight with the S&P 500 dropping below 2,000 as the crisis in Ukraine and less-than-expected retail earnings deflated optimism from a better-than-estimated economic growth,” he added.

Among the sectoral indices, mining and oil turned in a positive performance, registering a 108.35 gain or 0.62 percent to close at 17,603.15; property was also up, ahead 11.56 points or 0.43 percent at 2,676.33; and services added 2.88 points or 0.13 percent to finish the week at 2,237.16. Declining subindices included holding firms, off 1.60 percent or 99.99 points at 6,150.12; industrials, losing 1.32 percent or 144.23 to close at 10,784,75; and financials, which shed 0.87 percent or 14.20 to 1,625.82.

Volume was again heavy, with 1.9 billion shares amounting to P32.554 billion changing hands. Decliners outpaced advancers 111 to 67, while 44 issues were unchanged.

Among the most actively traded stocks, Philippine Long Distance Telephone Company, Ayala Land Inc., Ayala Corp., BDO Unibank Inc., and Energy Development Corp. all registered gains, while Aboitiz Equity Ventures Inc., SM Investments Corp., Universal Robina Corp., Globe Telecom Inc. and Alliance Global Group Inc. ended lower.

Since the effects of the second quarter gross domestic product (GDP) growth rate published this week and recent corporate earnings announcements has worn off, Calaycay said investors are waiting for the August inflation report as the next market mover.

He added Friday’s closing is an indication that investors are beginning to discount uncertainties over rising prices, and that will lead to a “temporary and slight drop in activity and value turnover.”

“Nevertheless, we expect bargain-hunters and some pundits to stir up some action when trades resume on Monday,” Calaycay said.

He also said support remains at 6,970 to 7,000, while “a retest of the 7,100 to 7,200 range is possible.”

On Thursday, the PSEi closed at 7,100.70 after dropping 0.83 percent or 59.76 points, while the wider All Shares board shed 0.62 percent or 26.14 points to close at 4,205.66.

Share.
loading...
Loading...

Please follow our commenting guidelines.

Comments are closed.