PH shares down as rate cut hopes vanish on strong US job gains
MANILA — Philippine shares pulled back on the first trading day of the week as stronger employment data abroad weakened hopes of an earlier interest rate cut.
As anxious investors at home stayed on the sidelines, the benchmark Philippine Stock Exchange Index (PSEi) shed 0.92 percent, or 60.12 points, to close at 6,458.64 on Monday. Likewise, the broader All Shares Index was down by 0.71 percent, or 24.69 points, to 3,467.24.
Trading volume was relatively thin, with 282.36 million shares worth P3 billion changing hands, stock exchange data showed. Philstocks Financial Inc. research analyst Claire Alviar said this was lower than the month-to-date average of P4.37 billion.
Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said investor sentiment was dampened by “stronger-than-expected US jobs data from last week, which bolstered the belief that the [US Federal Reserve] won’t be slashing rates anytime soon.”
All subsectors in the red
He added higher employment “implies that the economy is strong and can withstand high interest rates.”
All subsectors were in the red, with mining firms losing the most. Among the 10 most actively traded stocks, only Gokongwei-led Universal Robina Corp. (URC) and Sy family-led SM Investments Corp. registered gains.
READ: Asian markets mixed following hotter-than-expected US jobs report
Razon-led International Container Terminal Services Inc. was the top-traded stock as it slipped by 1.24 percent to P350 per share.
It was followed by BDO Unibank Inc., down 2.79 percent to P136; Ayala Land Inc., down 2.34 percent to P27.15; URC, up 1.40 percent to P109; and Metropolitan Bank and Trust Co., down 2.16 percent to P68 each.
Other actively traded stocks were SM Investments, up 0.83 percent to P847; Manila Electric Co., down 0.83 percent to P360; Bank of the Philippine Islands, down 0.67 percent to P119; SM Prime Holdings Inc., down 0.73 percent to P27.35; and GT Capital Holdings Inc., down 2.17 percent to P587 per share.
Losers overpowered advancers, 109 to 58, while 66 companies closed unchanged. —Meg J. Adonis INQ
