PSE index ends lower on last-minute profit taking

The main index slipped on Thursday as investors booked profits amid the escalating conflict in the Middle East and ahead of the release of September Philippine inflation data.

The benchmark Philippine Stock Exchange index (PSEi) dropped by 0.18% or 13.89 points to 7,388.92 on Thursday, while the broader all shares index rose by 0.29% or 11.80 points to 3,982.66.

“The local market closed lower this Thursday. The bourse was in positive territory for the most part of the day but was dragged by last-minute profit taking,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

The PSEi opened at 7,406.79 and reached a high of 7,470.39 before succumbing to profit-taking.

“Philippine shares ended slightly lower on rising Middle East tensions, following Iran’s missile attack on Israel. Investors are bracing for more uncertainty as Israel starts a ground operation in Lebanon and tensions escalate with Hezbollah,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Israel bombed Beirut early on Thursday, killing at least six people, after its forces suffered their deadliest day on the Lebanese front in a year of clashes with Iran-backed Hezbollah, Reuters reported.

Israel said it had conducted a precise air strike on the Lebanese capital. Reuters witnesses reported hearing a massive blast, and a security source said it targeted a building in the district of Bachoura near parliament, the closest an Israeli strike has come to the central downtown district of Beirut.

“Locally, easing inflation expectations and strong manufacturing growth kept the market from drifting lower,” Mr. Limlingan added.

A BusinessWorld poll of 15 analysts yielded a median estimate of 2.5% for the September headline inflation.

If realized, this would be the slowest print in nearly four years or since 2.3% in October 2020. This would also be slower than 3.3% in August and 6.1% in the same month a year ago.

September consumer price index data will be released on Friday (Oct. 4).

Sectoral indices closed mixed on Thursday. Services dropped by 0.34% or 7.82 points to 2,274.57; holding firms went down by 0.24% or 15.03 points to 6,256.11; and property slipped by 0.02% or 0.62 points to 2,995.66.

On the other hand, mining and oil surged by 2.57% or 229.50 points to 9,146.91; industrials climbed by 0.38% or 37 points to 9,744.87; and financials rose by 0.23% or 5.57 points to 2,358.49.

Value turnover went up to PHP 7.38 billion on Thursday with 1.01 billion shares traded from the PHP 4.33 billion with 1.16 billion issues changing hands on Wednesday.

Advancers outnumbered decliners, 124 versus 83, while 49 names were unchanged.

Net foreign buying went down to PHP 287.5 million on Thursday from PHP 540.05 million on Wednesday. — R.M.D. Ochave with Reuters