Jitters over Taal pull down PH stocks

The local stock barometer slipped on Thursday as investors weighed the economic impact of the eruption of Taal Volcano.

The main-share Philippine Stock Exchange index (PSEi) shed 11.2 points, or 0.15 percent, to close at 7,653.18. Across regional markets, stock markets ended mostly higher as the US stock market reached new highs after the United States and China signed phase one of their trade agreement.

Uncertainties over Taal Volcano added to the cautious sentiment in the local market, some dealers said.

Value turnover amounted to P6.44 billion. There was net foreign selling of P478.39 million.

“Markets in Asia had mixed results but were mainly flat as investors determine what the effects are going to be on global growth moving forward,” AAA Equities head of research Christopher Mangun said.

“The PSEi travels further away from the 7,700 level as trading volumes fail to pick up coupled with more foreign outflows. Blue chips continue to get battered as the new year optimism fades away. Investors can only hope for better economic numbers, which will be released in the coming weeks to lift the sentiment. Even retail investors are getting bored as the market remains weak,” Mangun said.

The local market was dragged down by the industrial, holding firm, services and property counters.

On the other hand, the financial counter gained 1.03 percent, while the mining/oil counter rose by 0.99 percent.

There were 112 decliners that beat 89 advancers, while 32 stocks were unchanged.

Among the most battered companies for the day was Metro Pacific, which fell by 3.78 percent.

Jollibee lost 2.43 percent while JG Summit declined by 1.36 percent.

Ayala Land, SM Prime, SM Investments, Megaworld, PLDT, URC and Globe also declined.One notable decliner outside the PSEi was Manila Water, which declined by 3.29 percent.Manila Water has lost nearly half of its market capitalization since December when President Duterte started his rants about allegedly “onerous” provisions in the water concession contracts of Manila Water and Maynilad Water Services.Investors are now waiting for the changes in the concession agreements that these water companies will be forced to accept.