PSEI falls below 7,000 anew

The benchmark Philippine Stock Exchange Index (PSEi) slid below the 7,000 level anew on Monday as investors continued to stay on the sidelines.

By the closing bell, the PSEi was down 1.12 percent or 78.26 points to 6,926.51 while the broader All-Shares index was also down 0.59 percent to 4,276.58.

“Investors are just waiting for more news,” Jonathan Ravelas, BDO Unibank Inc. chief strategist, said in an interview Monday.

He said investors were looking at signals externally as well as further plans that the government might take to tame inflation, which would ultimately hurt consumer spending, the main pillar of the Philippine economy.

He noted that one positive development in this aspect was the planned suspension of the second tranche of fuel excise taxes starting next year.

“The market is expecting more positive news,” Ravelas said, adding that third-quarter earnings results could be a trigger for either a bounce higher or continued weakness.

He pegged the support level, or the near-term base, at 6,800 for the PSEi. If this is breached, he said the market could move lower to 6,500.

Ravelas, citing historical trends, added that barring any significant changes in policy or the global economy, trading could remain sluggish over the next six to eight weeks.

Data from the PSE showed that most companies, save for the mining and oil subsector, closed in the red. Mining and oil added 0.24 percent while the industrial and services sectors, which declined 1.71 percent and 1.09 percent, respectively, led the losers.

Volume was also relatively thin at 542.2 million shares valued at P4.4 billion.