Stocks continue to weaken on inflation worries
The local stock barometer slipped in thin trade on Monday as investors remained on the sidelines due to inflation jitters.
The main-share Philippine Stock Exchange index (PSEi) shed 54.74 points or 0.75 percent to close at 7,222.08 as foreign funds continued to exit the local market.
The PSEi has now pulled back by 1,856.29 or around 20 percent from the historic peak in January, thereby knocking on bear territory.
A downturn of 20 percent or more from a peak over a two-month period is considered an entry into a bear market, or a period of consistently falling prices of securities or the opposite of a bull market.
“After looking at long-term price trends in the PSE, it seems that the momentum of the stock market is just standing or running on two legs, Ayala and SM Investments, which, in turn, are supported by momentum from property. Both groups represent the vulnerability to take PSEi below 7000,” ATR Asset Management head of research Jose Mari Lacson said.
Value turnover was thin on Monday at P4.23 billion. There was P677.5 million in net foreign selling for the day.
There were 101 decliners that edged out 75 advancers while 53 stocks were unchanged.
The PSEi was weighed down most by the industrial, holding firm and mining/oil counters, which all tumbled by more than 1 percent. The property counter declined by 0.12 percent.
On the other hand, the financial and services counters slightly gained.
The PSEi was weighed down most by URC, which lost 3.46 percent, while SM Investments, Security Bank and Meralco all declined by more than 2 percent.
SM Prime, Ayala Corp., AEV and Jollibee all lost more than 1 percent. PLDT gained 4.59 percent while Ayala Land advanced by 1.37 percent.
One notable gainer outside the PSEi was Megawide, which gained 2.84 percent after announcing a P2-billion stock buyback program.
BPI, BDO, Globe Telecom, Metrobank, San Miguel Corp., Aboitiz Power and RRHI also firmed up.
