NEGATIVE global sentiment dragged the local market during the first trading day of a fourday week, heightening the absence of market-lifting catalysts to encourage a new round of buying.
The PSEi slipped 0.56 percent or 41.81 points to close at 7,484.89, while the broader All Shares dipped 0.47 percent or 4,320.34 points to 4,320.34.
“Interest rate hike concerns, following higher-than-expected nonfarm payroll in the US last Friday, spooked global markets, including the Philippines,” said Alexander Adrian Tiu, analyst at AB Capital Securities Inc. “Greece debt also remains unresolved which also bended the market today.”
He pointed out the PSEi has breached the 7,500 critical support level, a major factor whether or not the market will drop to 7,200 if it fails to hold at 7,500.
Low trading volumes and lower-than-expected Chinese import data helped drag the market during Monday’s trading, said Jason Bibit, equity analyst at Regina Capital Development Corp.
“There wasn’t a lot of market leads, hence the low trading volume today.
We also had lower-than-expected Chinese imports last month – down 17.6 percent year-on-year – which does not bode well for the recovery in our exports since China is one of our top trading partners,” Bibit said.
“For this week, we expect intraday volatility to remain high. The PSEi’s 200day moving average of 7,470 will really be tested this week. If this level breaks, the index could go lower to 7,370,” he added.
Bibit noted investors should look at rallies as opportunities to lighten positions until the downtrend is clearly reversed.
The entire subindex counters lost on Monday, led by the 1.18percent or 169.92point slump of the mining and oil sector.
Among the stocks active during the session only Emperador Inc. gained and Metro Pacific Investments Corp. ended flat, while the rest registered declines. Top losers included Universal Robina Corp., Metropolitan Bank and Trust Company, Ayala Land Inc., Alliance Global Group Inc., Ayala Corp., GT Capital Holdings Inc., and Jollibee Foods Corp.
Decliners outnumbered advancers, 110 to 73, while 48 issues were unchanged. Total volume reached 516.81 million shares valued at P5.058 billion.
This trading week is one day short as financial markets will be closed on Friday, June 12, for Independence Day.