Weak trading seen as foreign selling continues
Financial markets are closed today, declared as a non-working holiday after Christmas Day.
Last week, the Philippine Stock Exchange index ended 261.65 points or 3.8 percent lower to close at 6,563.67.
Since the start of the year, the PSE index has lost a total of 382.41 points or 5.5 percent. Unless the PSEi rallies on yearend window-dressing this week, the PSEi is seen to close lower for the second straight year in a row.
The local stock barometer closed 2015 at 6,952.08, down by 3.85 percent.
Globally, there were outflows from both emerging market and developed market equities last week.
In recent days, foreign investors have been selling out of emerging markets especially with anticipation of three interest rate increases in the US.
The PSEi slipped further last Friday, even testing the 6,400-mark in intra-day trade, on sluggish investor appetite ahead of the Christmas break. It shed 23.5 points or 0.36 percent to close at 6,563.67, tracking sluggish markets across the region. The index hit a low of 6,499 in intra-day trade.
All counters ended lower last Friday. There were 105 decliners that overwhelmed 66 advancers; while 46 stocks were unchanged. Value turnover for the day amounted to P6.22 billion.
“Indeed it’s a blue Christmas. There are decorations of more red on a green Christmas tree at the trading board,” said Astro del Castillo, managing director at local fund management firm First Grade Finance. “There are no real incentives for now to reel back investors. Most are already in a holiday break. Thinner volume is evidenced [by the fact] that most market participants are still in a risk-averse mode. We’re keeping our fingers crossed that hopefully we can still end with a bang this year given earnings growth momentum of most listed companies.”
Investors sold down shares of Metro Pacific, which fell by 3.07 percent while PLDT also tumbled by 2.09 percent.
SM Prime, URC, Ayala Corp. and Aboitiz Equity all fell by over 1 percent while Ayala Land Inc., GT Capital and BPI all slipped.
