PSEi pauses after 6-day run-up
The local stock barometer ended a six-day winning streak on Wednesday as investors pocketed recent gains and chose caution ahead of US president-elect Donald Trump’s potential policy pronouncements.
The Philippine Stock Exchange index lost 42.53 points or 0.58 percent to close at 7,321.82, bucking the upswing in most regional markets.
At the local market, investors locked up gains from the strong rally since at the start of the year. Others took their cue from the sluggish trading in Wall Street overnight.
The sellers at the local market were mostly local investors. Foreign investors, however, took advantage of the decline by picking up stocks, bringing in P456 million in net foreign inflows. There has been net foreign buying at the local stock market for the ninth straight trading session.
“Investors will focus on US President-elect Trump’s media interaction, comments from (US Federal Reserve) Fed chair (Janet) Yellen, equity earnings, China price action and data,” Citigroup said in a research note.
“Investors will closely watch for cues on policy priorities and potential trajectory of the incoming government,” Citi said
Trump was scheduled to hold a media briefing on Wednesday midnight (Manila time). The incoming US president had talked about bringing back jobs to America during his campaign. In the Philippines, this has caused concern on the business process outsourcing (BPO) industry, an industry that generates over $22 billion in annual revenues.
On Friday, Citi said Fed chair Yellen’s comments would also be closely watched.
At the local market, the PSEi was led lower by the financial, holding firm, services and property counters. On the other hand, the industrial and mining/oil counters modestly gained.
Total value turnover for the day amounted to P7.15 billion. There were 99 decliners that outnumbered 88 advancers while 52 stocks were unchanged.
Investors locked up gains from telecom stocks Globe Telecom and PLDT, which respectively fell by 2.35 percent and 1.57 percent.
SM Investments and Metro Pacific both fell by over 1 percent while SM Prime, Ayala Land, JG Summit, Semirara, Metrobank and BDO also slipped.
On the other hand, the PSEi’s decline was tempered by the gains eked out by EDC, which rose by 2.67 percent, while Ayala Corp., Universal Robina Corp., Jollibee, Security Bank and Megaworld also gained.
Outside the PSEi, one notable gainer was Po-led property developer Arthaland Corp.
On the other hand, Pilipinas Shell surged by 5.46 percent after obtaining a favorable ruling from the Supreme Court on a tariff dispute with the Customs Commissioner on its crude imports.
Since the start of the new year, the PSEi has so far gained a total of 481.18 points or 7 percent.
