Regional Woes pull down PH stocks

The local stock barometer started the week on a sluggish mode as regional markets were muted by concerns over China’s economic growth.

The Philippine Stock Exchange index (PSEi) shed 29.74 points or 0.4 percent to close on Monday at 7,369.44 in thin trade.

Regional markets ended mostly lower as China posted a second quarter growth rate of 6.7 percent, the slowest pace seen in two years, alongside weaker gauges for investment growth and factory output.

Furthermore, investors are bracing for more headwinds from the burgeoning US-China trade war.

Local stock brokerage Papa Securities said the PSEi’s technical indicators show overbought levels after the four-day rally last week that brought the index closer to the next key resistance levels of 7,440-7,500.

Another source of caution is that last week’s rebound was accompanied by weak volume, Papa Securities said.

The PSEi was weighed down most by the financial, holding firm, services, mining/oil and property counters.

Value turnover was thin at P4.28 billion.

There were 90 decliners that edged out 82 advancers while 55 stocks were unchanged.

One notable decliner was Metro Pacific, which shed 3.06 percent.

The PSEi was also weighed down by Ayala Land, SM Investments, Jollibee and PLDT, which all lost over 1 percent, as investors pocketed recent gains.

Metrobank—the day’s most actively traded company— gained 0.43 percent.

The bank refuted rumors of a P400-million branch fraud that circulated in the last two weeks.

SM Prime, Ayala Corp., BPI and ICTSI also gained.