Local market ignores regional rally as investors pocket gains

The local stock barometer slipped on Wednesday but stayed above the 7,300 mark as investors pocketed recent gains.

The main-share Philippine Stock Exchange index (PSEi) lost 47.29 points or 0.64 percent to close at 7,323.36, wiping the modest gain made in morning trade.

The PSEi declined for the second straight session as investors reassessed their portfolios after the sharp gain seen since the start of this year.

Across the region, stock markets were mostly higher on Wednesday but gains were capped by lingering jitters over US President Donald Trump’s policies.

“Market hopes for an infrastructure spending push from the new US administration got some support from President Trump’s steps to advance construction of two oil pipelines. This boosted the industrial metal prices and together with better-than-expected corporate earnings reports pushed S&P higher,” Citigroup said.

At the local market, the PSEi was modestly higher in morning trade but eventually dipped. The index was weighed down most by the property counter, which fell by 0.96 percent, while the financial, industrial, holding firm and services counters also slipped. Only the mining/oil counter gained for the day.

Value turnover at the local market amounted to P5.45 billion.

Despite the day’s decline, market breadth was positive as there were 106 advancers that edged out 79 decliners while 52 stocks were unchanged. This meant that investors scouted for bargains outside the main index.

Foreign investors were in a net selling position amounting to P83 million.

The PSEi was led lower by PLDT and Megaworld, which both tumbled by more than 2 percent.

SM Prime, URC, Metro Pacific and DMCI all slipped by more than 1 percent.

Ayala Land, BDO Unibank, Metrobank, Semirara, Security Bank and AEV also contributed to the PSEi’s decline.

Outside the PSEi, there was likewise profit-taking on Bloomberry, which fell by 1.27 percent, while Philippine Seven lost 2.07 percent in relatively heavy volume.

On the other hand, LT Group bucked the day’s downswing with its 1.14-percent gain.  The Bureau of Internal Revenue (BIR) is probing fake tax stamps allegedly found in cigarettes sold by Mighty, the key rival of LT Group’s Fortune tobacco business.

SM Investments Corp., Meralco and Jollibee also firmed up.

Non-PSEi stock Shakey’s Pizza rose by 1.94 percent as investors scouted for alternative consumer plays.