PSEi stays below 7,500

THE LOCAL stock barometer slipped on follow-through selling on Tuesday but losses were curbed by local inflation data last month, which ended at its slowest pace in two decades.

The Philippine Stock Exchange index gave up 12.5 points or 0.17 percent to close at 7,442.65.

The decline was led by mining/oil counter which tumbled by 1.3 percent while the financial, industrial and holding firm sub-indices faltered at a more modest pace.

On the other hand, the services sub-index and the interest rate-sensitive property counter firmed up slightly.

Market breadth was negative as there were 71 advancers which were edged out by 102 decliners while 40 stocks were unchanged. Value turnover stood at P6.5 billion.

One notable decliner among PSEi stocks was Megaworld, which fell by 3.11 percent while AC – the day’s most actively traded stock – also slumped by 1.97 percent. RLC was also down by 1.41 percent.

Semirara, BDO, GTCAP, SMIC and Jollibee also declined.

On the other hand, Bloomberry – earlier battered by larger-than-expected losses in the first quarter – gained 4 percent. SMPH and JG Summit also gained by over 1 percent.

Globe, URC, PLDT, ALI, Metrobank and AP also advanced modestly.

There was follow-though selling in the market after key support levels were breached but benign local inflation data tempered losses. It was reported on Tuesday that the Philippine inflation rate settled at 1.2 percent, the lowest level seen since 1995.

Across the region, sentiment was mixed as global investors continued to monitor developments in Greece following its debt default and the rejection – through a national referendum – of new austerity measures demanded by creditors.

Investors are also tracking the shakeout in Chinese markets amid asset bubble concerns.

“Currently, the index has broken through the 7,560 support which could lead to the next one at 7,380,” said local stock brokerage DA Market Securities. “The next move will be pivotal as it would indicate an attempt at holding at previous low or even a higher low or a continued downtrend seeking new lows.”

DA Market noted that the previous low at 7,272 would be an important level to watch, adding that failure to hold would indicate a continued bearish stance.

“Note that 7,000 is a formidable five-year chart trend support and if broken would lead to a test of lower support at 6,780 which would mark a 20 percent retracement from all-time high, nearby October/December 2014 lows and entry into a bear market,” the brokerage said.