Local stocks slip, close at 6,509 in thin trade

MANILA, Philippines–Local stocks slipped on Monday but stayed afloat 6,500 in thin trade ahead of the “ghost month” which starts by mid-week.

The main-share Philippine Stock Exchange index lost 24.22 points or 0.37 percent to close at 6,509.73.  Across regional markets, trading was mostly sluggish on weaker than expected US data alongside the nearing “ghost month” in the Chinese calendar.

At the local market, all counters were in the red except for mining/oil which was only modestly higher.

“It’s gonna be this way for a few more weeks.  The market needs to see confirmation of sustained macroeconomic and EPS (earnings per share) growth,” said Gus Cosio, president of First Metro Asset Management Inc.

Value turnover was thin at P4.99 billion.  There were only 58 advancers which were beaten by 93 decliners while 39 stocks were unchanged.

The “ghost month” refers to the seventh month in the Lunar calendar when it is deemed unlucky to make big investments.  This period begins this Wednesday (August 7) and will run through September 4.

The index was weighed down most by Bloomberry (-3.74 percent), AEV (-3.4 percent and RLC (-3.08 percent) while MPI, AP, Belle and DMCI all fell by over 2 percent. BDO, URC and Globe also lost ground by over 1 percent.

On the other hand, the PSEi’s decline was tempered  by the gains eked out by JFC (+2.44 percent) and ALI (+1.03 percent). Metrobank, Megaworld, Philex, EDC and PLDT and ICTSI also contributed some gains.

SM gained by 0.23 percent to P881 but was still lower than the P900 million price at which the country’s most valuable conglomerate accepted a private placement last Friday.