PSEi slips below 8,000 as trading volume thins

By Arra B. Francia, Senior Reporter

LOCAL SHARES dropped on Thursday as investors paused following the previous session’s flight past the 8,000 level.

The bellwether Philippine Stock Exchange index (PSEi) failed to hold the 8,000 level yesterday as it fell 0.65% or 52.73 points to close at 7,955.80. The broader all-shares index likewise lost 0.42% or 20.96 points to finish at 4,888.92.

“The index took a breather today…after yesterday’s breakout and close above the 8,000 mark. Volume was noticeably lower at only P7.3 billion versus yesterday’s P9.8 billion,” Papa Securities Corp. Sales Associate Gabriel Jose F. Perez said in an e-mail on Thursday.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan noted that investors sold down after tracking geopolitical updates.

“It was a sell on news trading session with the major news items being the Brexit dateline extended and the FOMC (Federal Open Market Committee) minutes showing more patience needed,” Mr. Limlingan said in a mobile phone message.

The European Union had agreed to extend the United Kingdom’s membership in the bloc until Oct. 31, giving the British Parliament more time to sort out certain laws. Meanwhile, the US Federal Reserve hinted at a possible rate hike before the year ends should economic conditions improve.

“Overall, the minutes shouldn’t change policy expectations a whole lot although they do suggest more support for an average 2% inflation target,” Mr. Limlingan said.

Internationally, markets were mostly in positive territory as they digested the minutes of the FOMC meeting. The Dow Jones Industrial Average eked out gains of 0.03% or 6.58 points to close at 26,157.16. The S&P 500 index advanced 0.35% or 10.01 points to 2,888.21, while the Nasdaq Composite index increased 0.69% or 54.97 points to 7,964.24.

Asian markets, however, ended mixed as investors watched geopolitical movements such as the Brexit deadline extension.

Back home, sectoral indices were equally split between gainers and losers. The mining and oil counter led those in positive territory, jumping 1.81% or 139.31 points to close at 7,818.70. Property rose 0.7% or 29.09 points to 4,168.18, while financials added 0.19% or 3.35 points to 1,745.83.

On the other hand, holding firms slumped 1.75% or 138.22 points to 7,735.68. Industrials slipped 0.97% or 116.44 points to 11,837.20, while services shed 0.42% or 6.89 points to 1,624.09.

Turnover dropped to P7.29 billion after some 825.43 million issues switched hands, lower than the previous session’s P9.83 billion.

Net foreign inflows swelled to P1.12 billion from Wednesday’s P970.64 million.

Decliners swamped advancers, 116 to 80, while 45 names were unchanged.