Dull trade sees PSEi back below 6,500

MANILA  -The benchmark Philippine Stock Exchange index (PSEi) is once again below 6,500 as investors focused on external risks and attention rapidly shifted away from news that domestic inflation cooled further in June.

The PSEi sank 0.59 percent, or 38.13 points, to 6,474.26 while the broader All Shares index lost 0.40 percent, or 13.82 points, to 3,455.93.

“The index fell as investors turned negative after a review of the minutes of the Federal Reserve’s June meeting reaffirmed the hawkish trajectory of US monetary policy.

Sentiment was also [weighed down] by China’s export curbs on certain metals used in electronics and semiconductors in what is seen as an escalation of its technology trade war with the US and Europe,” Juan Paolo Colet, managing director at investment bank China Bank Capital Corp., said in a note to investors on Thursday.

“The lack of sustained market strength even after the release of the Philippine June inflation print shows traders have already priced in the deceleration of domestic inflation and are looking for other news to drive stock prices,” he added.

A total of 745.77 million shares valued at nearly P4 billion changed hands while net foreign selling reached P99.41 million.

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