PHL stocks inch lower as market stays cautious

PHILIPPINE SHARES inched lower on Wednesday as investors stayed on the sidelines amid an increase in US Treasury yields and the ongoing conflict in the Middle East.

The Philippine Stock Exchange index went down by 12.63 points or 0.2% to close at 6,268.27 on Wednesday, while the broader all-shares index shed 5.98 points or 0.17% to end at 3,385.40.

“Stocks moved sideways as traders continued to stay on the sidelines. Sentiments were hampered by the rise in US benchmark yields overnight. Concurrently, ongoing tensions in the Middle East continued to hound market confidence,” AB Capital Securities, Inc. Vice-President Jovis L. Vistan said in a Viber message.

“Nevertheless, downside risks appear to be constrained, considering the attractiveness of market valuations when viewed through a historical lens,” Mr. Vistan added.

Shares went down as the investors remain concerned over the was in the Middle East, Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

“Investors were concerned about the escalating conflict’s impact on oil prices, potentially leading to an increase in domestic oil prices if global prices continue to climb. This situation is anticipated to be unfavorably received by investors, especially in light of our elevated inflation,” Ms. Alviar said.

“Philippine shares edged lower as investors analyze the latest bond yield movement and on corporate earnings stateside. The yield on the 10-year US Treasury note hit its highest level since (October),” Regina Capital Development Corp. Head of Sales Luis A. Limlingan added in a Viber message.

Two-year US Treasury yields surged by as much as 14 basis points on Tuesday to a 16-year peak of 5.24%, Reuters reported. The two-year was last at 5.20%, while 10-year yields were back near recent highs at 4.84%.

Meanwhile, a huge explosion at a Gaza hospital killed hundreds of Palestinians, wrecking a diplomatic mission by US President Joseph Biden, who arrived in Israel on Wednesday but was snubbed by Arab leaders who called off an emergency summit.

Palestinian officials blamed an Israeli air strike for the huge blast and fireball that engulfed the Al-Ahli al-Arabi hospital.

Back home, the majority of sectoral indices dropped on Wednesday. Property fell by 20.60 points or 0.77% to 2,652.59; mining and oil decreased by 76.89 points or 0.7% to 10,853.49; holding firms declined by 31.85 points or 0.53% to 5,907.47; and services went down by 7.46 points or 0.48% to 1,541.10.

Meanwhile, industrials rose by 89.50 points or 1.01% to 8,916.02 and financials climbed by 1.94 points or 0.1% to 1,799.46.

Value turnover went down to PHP 5.12 billion on Wednesday with 1.12 billion shares changing hands from the PHP 5.69 billion with 1.25 billion issues seen on Tuesday.

Decliners outnumbered advancers, 92 versus 73, while 61 shares closed unchanged.

Net foreign selling stood at PHP 32.59 million on Wednesday versus the PHP 276.42 million in net buying recorded on Tuesday. — SJT with Reuters