Philippine stocks extend decline before Marcos’ SONA

Philippine stocks ended lower for the third straight day on Monday before President Ferdinand R. Marcos, Jr. delivered his State of the Nation Address (SONA) after the market’s close.

The benchmark Philippine Stock Exchange index (PSEi) dropped by 0.52% or 33.43 points to close at 6,379.75, while the broader all shares index declined by 0.08% or 3.38 points to 3,793.49.

The PSEi opened the session higher at 6,411.26 and even hit a high of 6,417.43 before succumbing to weakness by the closing bell.

“The PSE started the week on a negative tone… The local market dropped as investors took a cautious stance while waiting for President Marcos’ SONA,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

“Investors are going to pay close attention to the SONA, particularly regarding which industries might receive more support from the government, face stricter regulation, and the overall direction of the local economy,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Mr. Marcos delivered his fourth SONA at the Batasang Pambansa in Quezon City on Monday. Before the SONA, Senator Francis “Chiz” G. Escudero and Leyte Rep. Ferdinand Martin G. Romualdez were reelected as Senate President and House Speaker, respectively, for the 20^th Congress.

“The peso’s pullback for the day also weighed on the local bourse,” Mr. Tantiangco said. The peso dropped by nine centavos to close at PHP 57.20 per dollar on Monday, Bankers Association of the Philippines data showed.

“Moreover, investors are still waiting for the PSEi rebalancing that might also affect price reactions,” Mr. Limlingan added.

“While the trend remains upward, investors should remain mindful of potential near-term consolidation as market sentiment evolves.”

Almost all sectoral indices closed lower on Monday. Mining and oil went down by 1.68% or 158.7 points to 9,253.28; property sank by 0.8% or 19.14 points to 2,358.42; financials decreased by 0.66% or 14.97 points to 2,237.96; holding firms fell by 0.62% or 34.45 points to 5,441.83; and industrials retreated by 0.57% or 52.18 points to 9,097.76.

Meanwhile, services rose by 1.52% or 34.09 points to 2,270.16.

“Bloomberry Resorts Corp. was the day’s index leader, climbing 2.7% to P4.56. Universal Robina Corp. was the main index laggard, falling 2.65% to P92,” Mr. Tantiangco said.

Value turnover went down to P6.61 billion on Monday with 1.11 billion shares exchanged from the P6.95 billion with 1.69 billion shares traded on Friday.

Decliners bested advancers, 108 versus 90, while 48 names were unchanged.

Net foreign selling was at PHP 155.996 million on Monday, a reversal of the PHP 113.74 million in net buying recorded on Friday. — Revin Mikhael D. Ochave