PSEi falls below 6,000 on strong selling pressure

The main index on Monday fell below the 6,000 mark for the first time in nearly six months, succumbing to selling pressure amid a lack of positive trading drivers.

The benchmark Philippine Stock Exchange index (PSEi) sank by 0.49% or 29.52 points to close at 5,997.60, while the broader all shares index dropped 0.23% or 8.46 points to 3,636.34.

This was the stock benchmark’s worst finish in almost six months or since it ended at 5,822.85 on April 7, which was also the last time the PSEi closed below the 6,000 line.

“The PSEi fell below the 6,000 mark as prices continued to decline despite last week’s all-red performance. Selling pressure remains strong, with the market still lacking any positive catalyst,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Adding to the bearish sentiment are the ongoing uncertainties in the country and the continued depreciation of the peso against the US dollar, which is dampening confidence among both local and foreign investors,” he said.

Net foreign selling went down to PHP 405.93 million on Monday from PHP 551.36 million on Friday.

Meanwhile, the peso dropped by 4.5 centavos to close at PHP 58.145 against the dollar on Monday from its PHP 58.10 finish on Friday.

This was the local unit’s weakest finish in two months or since it ended at PHP 58.32 on July 31.

“The PSE index closed slightly below the key support at 6,000 on anemic volume as investors remain on the sidelines,” AP Securities, Inc., said in a market note.

Value turnover dropped to PHP 4.72 billion with 1.37 billion shares traded from Friday’s PHP 5.46 billion with 1.66 billion shares changing hands.

The majority of sectoral indices closed higher on Monday. Mining and oil increased by 5.32% or 639.31 points to 12,653.66; industrials rose by 0.9% or 79.03 points to 8,815.07; holding firms went up by 0.31% or 15.28 points to 4,931.66; and property climbed by 0.01% or 0.30 point to 2,325.34.

Meanwhile, services slumped by 1.58% or 35.04 points to 2,176.90, and financials dropped by 1.22% or 25.47 points to 2,047.17.

Decliners outnumbered advancers, 106 to 100, while 58 names were unchanged.

Mr. Limlingan said the market will likely wait for fresh labor market data from the United States for leads.

Meanwhile, most share markets rose in Asia on Monday while the dollar eased as investors braced for a possible shutdown of the US government, which would in turn delay publication of the September payrolls report and a raft of other key data, Reuters reported.

President Donald J. Trump was set to meet with the top Democratic and Republican leaders in Congress later on Monday to discuss extending government funding. Without a deal a shutdown would begin from Wednesday, which is also when new US tariffs on heavy trucks, patented drugs and other items go into effect. — A.G.C. Magno with Reuters