PSE index drops to 8,300 level, lowest in 2018
The local stock barometer fell to the 8,300 level on Monday ahead of the Philippine inflation report for February while the rest of the regional markets remained sluggish.
The main-share Philippine Stock Exchange index (PSEi) shed 72.4 points or 0.86 percent to close at 8,386.17, its lowest finish so far this year.
“The market seems to still be very sensitive on the (US Federal Reserve) Fed’s hawkish tone as well as to the possible impact of US tariffs on world trade. Investors are looking at the Fed’s beige book release on the 7th and the Bank of Japan’s policy decision (which will be out on Friday) to provide some direction,” said Manuel Lisbona, president at PNB Securities.
“The first days of March don’t bode too well especially with a couple of issues currently bothering the index,” local stock brokerage Papa Securities said, noting that the country’s February inflation report would come out on Tuesday.
“A figure far off from January’s 4 percent (a three-year high) wouldn’t look too well especially with the monetary policy meeting scheduled three weeks from now on March 22,” it added.
JG Summit’s removal from the FTSE indices and the persistent weakness in the US markets likewise continued to weigh down the market, Papa Securities said.
The PSEi has now reversed early gains seen in the year.
Despite the PSEi’s decline, there were 117 advancers that edged out 100 decliners while 41 stocks were unchanged. This suggested that investors scouted for opportunities among second- and third-liner stocks.
Metrobank, BDO, Meralco and Semirara all shed over 2 percent while SM Investments slipped by 1.86 percent.
BPI, Ayala Corp. and Security Bank also declined.
JG Summit was flat after it was officially announced that it would be removed from the FTSE index. Speculation about this FTSE exit weighed down the company’s share prices last week.
On the other hand, Waterfront sizzled at the stock market, gaining 50 percent.
PXP Energy also surged by 13.16 percent on the back of an oil exploration play.
APC Group added 6.35 percent.
