PH stocks snap four-day rally on profit taking

Philippine shares snapped its four-day winning streak on Monday as investors pocketed their gains before the month’s close and following hawkish statements from a central bank official.

The Philippine Stock Exchange index (PSEi) fell by 0.31% or 21.72 points to end at 6,891.49 on Monday, while the broader all shares index went down by 0.21% or 7.63 points to close at 3,600.49.

“Philippine shares slipped below the 6,900 level as investors took profits right before the close of February and the latest MSCI rebalancing,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Mikhail Philippe Q. Plopenio, Philstocks Financial, Inc. research and engagement officer, said the PSEi closed lower after hawkish comments from a Bangko Sentral ng Pilipinas (BSP) official.

“This Monday, the local market dropped by 21.72 points (-0.31%) to 6,891.49 as investors secured gains after a four-day rally, while they awaited fresh catalysts to break the 7,000 psychological level,” Mr. Plopenio said.

“Moreover, the sentiment was further dampened by tempered rate cut hopes after BSP Deputy Governor Francisco G. Dakila, Jr. stated that the central bank is prepared to adjust its monetary policy settings as needed as inflation risks are present,” he added.

In a BusinessWorld Insights webinar on Thursday, Mr. Dakila said risks remain despite inflation easing to a three-year low in January.

“Given the prevailing upside risks to the inflation outlook, the BSP is prepared to adjust its monetary policy settings as necessary in keeping with its primary mandate of safeguarding price stability,” he said.

Nonmonetary measures also remain crucial to sustain the disinflation process and address lingering supply-side pressures, he said.

The BSP kept the key rate at 6.5% — the highest in nearly 17 years — for a third straight meeting in February. Inflation eased to the slowest in three years to 2.8% in January from 8.7% a year ago.

Sectoral indices were mixed. Property declined by 1.99% or 59.31 points to 2,914.49; financials went down by 0.66% or 13.45 points to 2,004.09; and services retreated by 0.07% or 1.24 points to 1,736.46.

On the other hand, industrials rose by 0.58% or 54.11 points to 9,269.84; mining and oil climbed by 0.53% or 46.49 points to 8,718.98; and holding firms went up by 0.42% or 27.12 points to 6,473.90.

“Among the index members, Monde Nissin Corp. was at the top, climbing 2.34% to PHP 10.48. Ayala Land, Inc. lost the most, dropping 4.30% to PHP 35.60,” Mr. Plopenio said.

Value turnover declined to PHP 4.24 billion on Monday with 677.01 million issues switching hands from the PHP 4.54 billion with 565.13 million shares traded on Friday.

Advancers outnumbered decliners, 89 versus 78, while 65 names closed unchanged.

Net foreign buying fell to PHP 39.51 million on Monday from the PHP 60.17 million logged the previous trading day. — Revin Mikhael D. Ochave