PHL shares decline on profit-taking before SONA

Philippine shares declined on Monday as investors pocketed their gains from the market’s three-day climb ahead of the third State of the Nation Address (SONA) of President Ferdinand R. Marcos, Jr.

The benchmark Philippine Stock Exchange index (PSEi) fell by 1.17% or 79.64 points to close at 6,712.05 on Monday, while the broader all shares index declined by 0.76% or 27.85 points to end at 3,599.98.

“The local bourse dropped as investors took profits following the market’s rally,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

“Investors were also waiting for the President’s SONA. There are many issues that investors want to hear about, especially the government’s plan to meet the economic growth target in the coming years,” Ms. Alviar added.

Philippine stocks closed lower along with most regional markets following US President Joseph Biden’s withdrawal from the 2024 presidential race, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Mr. Biden announced he was exiting the race on Sunday, and endorsed Vice-President Kamala Harris for the Democratic ticket, Reuters reported.

Asian shares slid anew on Monday, getting little lift from a surprise rate cut by China’s central bank, while Wall Street futures firmed in the wake of Mr. Biden’s decision to bow out of the election race.

The People’s Bank of China cut short-term rates by 10 basis points, which pulled down long-term borrowing costs and bond yields. The move follows Beijing’s release of a policy document on Sunday outlining its ambitions for the economy.

MSCI’s broadest index of Asia-Pacific shares outside Japan lost another 0.7%, having shed 3% last week. Japan’s Nikkei dropped 1.2% and South Korea’s benchmark index fell 1.3%.

Majority of sectoral indices closed lower. Services went down by 2.6% or 53.44 points to 1,996.18; industrials retreated by 1.99% or 184.59 points to 9,054.49; holding firms dropped by 1.11% or 64.62 points to 5,746.82; and financials declined by 0.48% or 10.20 points to 2,086.79.

Meanwhile, property rose by 0.66% or 18 points to 2,726.06; and mining and oil climbed by 0.23% or 20.59 points to 8,717.84.

“Among the index members, only five stocks were able to stay in the green, led by DMCI Holdings, Inc., up by 1.82%. On the other hand, Metropolitan Bank & Trust Co. was at the bottom, losing 4.43%,” Ms. Alviar said.

Value turnover dropped to PHP 6.23 billion on Monday with 531.62 million shares changing hands from the PHP 6.84 billion with 587.69 million issues traded on Friday.

Decliners outnumbered advancers, 107 versus 72, while 60 names closed unchanged.

Net foreign buying dropped to PHP 1.01 billion on Monday from PHP 1.44 billion on Friday. — R.M.D. Ochave with Reuters