The local stock barometer retreated from the 7,000 mark on Tuesday as the market shrugged off news about the slowdown in the country’s inflation rate in June.
The Philippine Stock Exchange index (PSEi) declined by 43.95 points, or 0.63 percent, to close at 6,992.43.
This was as the country’s year-on-year inflation rate for June eased to 4.1 percent from 4.5 percent in the past three consecutive months. The latest figure was better than the 4.3-percent consensus forecast.
“There was very little excitement about the confirmed continuing deceleration of inflation, which means that it was already priced in by the market,” said Christopher Mangun, head of research at AAA Equities.
Below average
But with trading volumes remaining below the daily average and just about half of levels seen at the beginning of the year, Mangun said the market’s risk appetite might be peaking, similar to what was suggested by technical indicators.
“The lack of potentially positive catalysts in the short-term will incite profit-taking,” he said.
The market was weighed down most by the property counter, which lost 1.03 percent, while the financial, industrial, holding firm and mining/oil counters all slipped by less than 1 percent.
The services counter inched up by 0.5 percent.
Value turnover amounted to about P5.1 billion. There was modest net foreign selling of P37.55 million.
There were 112 decliners that outnumbered 96 advancers, while 52 stocks were unchanged.
URC fell by nearly 2 percent while property giants Ayala Land and SM Prime both lost over 1 percent.
MPIC, SM Investments, Puregold and BPI all dipped by less than 1 percent.
Notable decliners outside the PSEi included Monde Nissin, which lost 2.61 percent.
The day’s most actively traded company was Century Pacific Food, which shed 0.64 percent.
Semirara and Wilcon both declined by less than 1 percent.
On the other hand, Globe Telecom gained 2.29 percent, while ICTSI, Bloomberry, Emperador and PLDT all added less than 1 percent.
One notable gainer outside the PSEi was BHI, which surged by 9.56 percent.
AC Energy added 2.72 percent.