PHL stocks decline further before BSP decision
PHILIPPINE SHARES dropped for the second straight day on Thursday as investors stayed on the sidelines ahead of the Bangko Sentral ng Pilipinas’ (BSP) policy decision.
The Philippine Stock Exchange index (PSEi) lost 50.48 points or 0.68% on Thursday to close at 7,299.34, while the broader all shares index shed 24.30 points or 0.61% to end at 3,933.70.
“The market ended lower as investors preferred to stay on the sidelines ahead of the local central bank’s decision on interest rates, and as market participants continue to wait for more significant catalysts to unfold in the local scene,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a Viber message.
After the market closed on Thursday, BSP Governor Benjamin E. Diokno announced in a virtual briefing that the Monetary Board decided to keep benchmark interest rates unchanged, in line with market expectations.
“Philippine shares fell along with the rest of the region as investors weighed a continuation of strong earnings reports from big-box retailers against lingering inflation and economic data concerns,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said in a Viber message that Wall Street also corrected lower due to an increase in new coronavirus infections in some large economies and concerns over higher inflation.
Wall Street benchmarks ended Wednesday lower on inflation fears and supply chain concerns stemming from retailers’ earnings, with investors betting the US Federal Reserve will raise interest rates sooner than expected to tame rising prices, Reuters reported.
The Dow Jones Industrial Average fell 211.17 points or 0.58% to 35,931.05; the S&P 500 lost 12.23 points or 0.26% to 4,688.67; and the Nasdaq Composite dropped 52.28 points or 0.33% to 15,921.57.
Sectoral indices closed in the red on Thursday except for property, which went up by 9.97 points or 0.30% to finish at 3,322.60.
Meanwhile, financials dropped 21 points or 1.30% to 1,588.67; mining and oil went down by 122.41 points or 1.26% to 9,580.26; services lost 17.25 points or 0.86% to finish at 1,978.92; holding firms gave up 61.11 points or 0.85% to 7,058.45; and industrials declined by 38.39 points or 0.35% to 10,710.57.
Value turnover increased to P7.82 billion with 882.46 million issues traded on Thursday, higher than the P7.46 billion with 832.91 million shares seen the previous day.
Decliners beat advancers, 141 against 55, as 45 names closed unchanged.
Foreigners turned sellers with P589.91 million in net outflows on Thursday from the P183.87 million in net purchases recorded on Wednesday.
The PSEi’s next support level is at 7,040 to 7,120, RCBC’s Mr. Ricafort said. — B.A.D. Anago with Reuters