PSEi closes flat as investors retreat to the sidelines

The local stock barometer ended flat on Tuesday as some investors returned to the sidelines after last week’s rally.

The Philippine Stock Exchange index (PSEi) closed at 6,627.43, almost unchanged from the previous day’s 6,628.49.

On its listing day, Monde Nissin also ended flat at P13.48 per share versus its initial public offering price of P13.50 per share.

“Investors are taking a step back to assess the developments and key economic data which will be released before the end of the week. We believe that this cautiously optimistic sentiment, which is translating to a slower rally, will ultimately be more sustainable,” said Christopher Mangun, head of research at AAA Equities.

“Having these pullbacks will keep the price from becoming too volatile and it will also allow investors to come in at more desirable prices. The rally may not move as quick as what we saw last year but it will keep it from seeing rapid declines,” he said.

Mangun sees the PSEi heading lower and testing the support level at 6,500 before the week is up.

The mining/oil index fell by 1.76 percent, which Mangun attributed to profit-taking as these stocks traded at multiyear highs.

The industrial, holding firm and services counters all declined by less than 1 percent.

On the other hand, the financial and property counters both added over 1 percent.

Stock debutante

Value turnover for the day amounted to P14.78 billion. Foreign investors were net buyers resulting in a net foreign inflow of P341.37 million.

Despite the PSEi’s decline, there were 107 advancers that slightly outnumbered 101 decliners, while 41 stocks were unchanged.

Jollibee fell by 2.28 percent, while Ayala, URC and PLDT all lost over 1 percent.

Puregold, SM Investments and GT Capital all declined by less than 1 percent.

Outside the PSEi, stock debutante Monde Nissin declined by 0.15 percent.

One notable decliner was Philex Mining, which tumbled by 6.61 percent.

On the other hand, BDO gained 2.03 percent, while Ayala Land, SM Prime and Megaworld all firmed up by over 1 percent.

BPI and Aboitiz Power added less than 1 percent.

Among the notable gainers outside the PSEi is Primex, which racked up 12.79 percent.

Century Pacific, AC Energy and Vista Land added 0.21 percent, 0.55 percent and 0.53 percent, respectively. INQ