PSEi dips to 6,800 level, tracks weak US markets

Philippine shares retreated to the 6,800 level on Monday, tracking weak US markets.

The 30-member Philippine Stock Exchange index (PSEi) dropped by 1% or 69.97 points to close at 6,872.24. The broader all-share index shed 0.78% or 28.09 points to 3,574.72.

The index fell along with other Asian markets after negative cues from Wall Street on Friday, Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message. “Moreover, foreign investors weighed on the market performance.”

Net foreign selling reached PHP 277.68 million, a reversal of PHP 563.62 million worth of net foreign buying on Friday.

The Dow Jones Industrial Average index shed 0.18% or 68.66 points to 38,722.69 on March 8, while the S&P 500 index dropped by 0.65% or 33.67 points to 5,123.69. The Nasdaq Composite index fell by 1.16% or 188.27 points to 16,085.11, while the New York Stock Exchange Composite index dipped by 0.21% or 38 points to 17,889.62.

The local market ended lower as investors await US inflation data for February, due on March 12, Luis A. Limlingan, sales head at Regina Capital Development Corp., said in a Viber message.

“The February US consumer price index may stir a new course of rhetoric for the US Federal Reserve as to how they will implement their policy rates over the next few months,” he said. “Some are pointing out that the overall cost of goods may not have moderated as fuel costs ticked up last month.”

US inflation slowed to 3.1% in January from 3.4% in December.

All the PSEi’s sectoral indices fell, led by property which declined by 2.69% or 76.67 points to 2,767.47. Industrials retreated by 1.15% or 105.2 points to 9,030.88, while mining and oil lost 1.05% or 89.05 points to 8,321.47.

Services shed 0.84% or 15.29 points to 1,794.37; holding companies dropped by 0.21% or 13.89 points to 6,590.10; and financials dipped by 0.11% or 2.38 points to 2,017.80.

Value turnover fell to PHP 3.76 billion, with 507.92 million issues changing hands, compared with 548.74 million stocks worth PHP 4.89 billion on Friday.

Decliners beat advancers 125 to 62, while 53 stocks were unchanged. – Revin Mikhael D. Ochave, Reporter