Caution punctuates local stock market

MANILA, Philippines—Trading was cautious at the local stock market on Thursday following an overnight Wall Street bloodbath that was caused by the prolonged debates over the US borrowing limit.

The main-share Philippine Stock Exchange index was down by 0.09 points or 0.002 percent to finish at 4,482.80.

Investor sentiment was gloomy across Asian markets as the Dow Jones Industrial Index shed 198.75 points or 1.59 percent overnight as jitters escalated over a nearing August 2 deadline to raise the US’ $14.3 trillion borrowing limit. Without any legislation by then, the US Treasury may default on its debts.

At the local market, the industrial and services counters weighed down the index the most while the financial, holding firms and property mining/oil managed to firm up.

Turnover thinned to P4.28 billion from Wednesday’s P5.1 billion.

There were 60 advancers as against 76 decliners while 48 stocks were unchanged.

Profit-taking on EDC, Megaworld, ICTSI, PLDT, DMCI and Security Bank took their toll on the index. Semirara was also in the red.

On the other hand, gains by banking stocks Metrobank and BDO as well as FLI and mining stocks Philex and Lepanto “A” (open only to local investors) cushioned the PSEi’s fall.  SM Investments, URC, Aboitiz Equity and AGI also gained in active trade.

Other non-index stocks that advanced in heavy volume were IP E-Games, East Asia Power and ORE.