PSEi resolute despite heavy selling in US, regional markets

Selective buying of large-cap stocks kept the local stock barometer afloat on Friday following the overnight bloodbath on Wall Street.

The main-share Philippine Stock Exchange index (PSEi) added 12.23 points or 0.21 percent to close at 5,785.09, bucking the downturn across the US and regional markets.

There was a heavy sell-off at the US stock markets after nearing record highs in previous sessions.

For the four-day trading week, the PSEi shed 99.09 points or 1.7 percent. The index has been declining for the third consecutive week as investors “continue to display a lack of confidence in the economy’s recovery,” said Christopher Mangun, head of research at AAA Equities.

“Businesses continue to struggle as Metro Manila is placed under what seems to be a never-ending lockdown. The recovering labor market and stable inflation failed to impress investors,” Mangun said.

Inflation rate in August had slowed to 2.4 percent year-on-year from 2.7 percent in July. On the other hand, the country’s jobless rate had gone down to 10 percent in July from the record high 17.7 percent in April.

On Friday, the local market was shored up by the property counter, which gained 1.79 percent, perked up by Ayala Land’s 4.83-percent rally.

The holding firm counter rose by 0.59 percent, supported by SM Investments and JG Summit, which both added over 1 percent. Aboitiz Equity Ventures also gained, with 0.72 percent.The mining and oil counter tumbled by 2.77 percent, while the industrial and services counters both declined by over 1 percent. The financial counter declined by 1.32 percent.

Value turnover for the day amounted to P5.45 billion. Domestic hands stabilized the market on Friday even with P770.2 million worth of foreign funds flowing out.

Despite the PSEi’s gain, market breadth was negative. There were 104 decliners that edged out 77 advancers, while 51 stocks were unchanged.

—DORIS DUMLAO-ABADILLA