Stock prices close lower for 3rd straight day

The local stock barometer slipped for the third straight session on Tuesday as foreign investors unloaded local equities ahead of a much-awaited speech by US president Donald Trump.

The main-share Philippine Stock Exchange index lost 20.38 points or 0.28 percent to close at 7,212.09.

The index touched the 7,100 mark in intra-day trade as investors were jittery over the strengthening of the US dollar against the peso.

Typically, a depreciating local currency is a disincentive to investors.

“Philippine markets closed out the month in negative territory as US stocks pared morning losses and eventually closed the session in record territory after President Donald Trump said he would make a “big” statement on infrastructure in his Tuesday night address to a joint session of Congress,” said Luis Gerardo Limlingan, managing director at Regina Capital Development.

At the same time, he said the US Federal Reserve’s interest rate hike probability for March had risen to almost 50 percent.

In addition, he noted that  US pending home sales had contracted to the lowest level in a year in January.

The PSEi was weighed down most by the financial counter, which slipped by 1.33 percent. The industrial, mining/oil and property counters also declined.

The day’s decline was tempered by the 1.4-percent gain of the services counter while the holding firm counter also firmed up.

Value turnover for the day amounted to P7.1 billion.  There was P771 million in net foreign selling for the day.

BDO fell by 2.12 percent while ALI, URC and Security Bank all slipped by over 1 percent.

MPI, SM Investments, Semirara, Ayala Corp., GT Capital, AGI and Jollibee all slipped.

Outside of the PSEi, one notable decliner was Cemex, which slid by 4.32 percent.

JG Summit rose by 2.78 percent while SM Prime and Globe both gained over 1 percent.  Metrobank was marginally higher.