PSEi continues dull trade as US economy enters pivotal test

MANILA  -The benchmark Philippine Stock Exchange index (PSEi) closed flat on Monday while trading activity dropped anew as investors stayed cautious ahead of the US inflation report.

By the closing bell, the PSEi rose 0.01 percent, or 0.69 points, to 6,379.72 while the broader All Shares index slipped 0.1 percent, or 3.28 points, to 3,419.

“The market was barely up on very low value turnover as investors remained cautious ahead of the US June inflation print,” Juan Paolo Colet, managing director at investment bank China Bank Capital Corp., said in a note to investors on Monday.

A total of 332.8 million shares valued at P2.82 billion changed hands while foreigners were mostly sellers of a net amount worth P255.18 million.

“The index initially traded above 6,400 early in the day before succumbing to selling pressure that kept [the] market in the vicinity of 6,380 for most of the session,” Colet said.

“The initial buying momentum dissipated as investors digested weak Chinese economic data—particularly flat consumer prices and a fall in producer prices—which indicate an increasing risk of deflation,” he added.

PSE subsectors ended mixed as financials, property and services pushed higher while holding firms, mining and oil and industrial slipped.

SM Investments Corp. was the top traded stock as it sank 0.27 percent to P908 per share.

It was followed by BDO Unibank Inc., down 0.22 percent to P135.60; Globe Telecom, up 1.77 percent to P1,842; Metro Pacific Investments Corp., down 0.81 percent to P4.92; and Bank of the Philippine Islands, up 2.55 percent to P108.60 per share.

Ayala Corp. was down 0.50 percent to P602; SM Prime Holdings Inc., flat at P31.90; and International Container Terminal Services Inc., up 1.01 percent to P200.40.

-CSN

READ: Tech stocks surge lifts Hong Kong but Asia rally stutters on China data