PHILIPPINE STOCKS declined on Monday, mirroring the drop in Asian markets, due to concerns about China’s property sector.
The Philippine Stock Exchange index (PSEi) fell by 76.72 points or 1.19% to close at 6,329.19 on Monday, while the broader all shares index went down by 32.30 points or 0.94% to end at 3,397.89.
“Investors’ sentiment continued to be dragged by the disappointing Q2 (second quarter) economic growth… Overseas, Asian markets were also mostly in the red as worries over the property sector in China heightened,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.
“Philippine shares slid as fears escalated surrounding China’s worsening property market slump, as a fresh batch pointed to tightening conditions. The latest releases show China’s bank loans slid, while consumer and producer prices both declined. This comes after China’s trading data fell below analysts’ projections last week,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said.
Asian shares slid on Monday as China’s property woes amplified the case for serious stimulus even as Beijing seems deaf to the calls, Reuters reported.
MSCI’s broadest index of Asia-Pacific shares outside Japan lost another 1.7%, after shedding 2% last week. Japan’s Nikkei was off 1.3%, even as exporters drew support from the weak yen.
Chinese blue chips fell 1.2%, on top of a 3.4% decline last week, amid a string of disappointing economic news culminating in a dire report on new bank loans in July.
Adding to concerns about the deteriorating health of the country’s debt-laden property developers was news two Chinese listed companies had not received payment on maturing investment products from Zhongrong International Trust Co.
“Investors await the… MB (Monetary Board) meeting on Aug. 17. The latest OFW (overseas Filipino workers) cash remittances print is expected to be released within the week,” Mr. Limlingan added.
A BusinessWorld poll last week showed that 13 of 15 analysts see the Monetary Board keeping benchmark rates steady at a near 16-year high of 6.25% during its fifth policy meeting for the year on Thursday.
Sectoral indices dropped on Monday except for mining and oil, which rose by 59 points or 0.59% to 9,908.30.
Meanwhile, property dropped by 57.03 points or 2.13% to 2,618.75; holding firms went down by 95.91 points or 1.58% to 5,969.99; services fell by 20.17 points or 1.29% to 1,532.79; financials lost 8.88 points or 0.46% to end at 1,899.66; and industrials declined by 21.47 points or 0.23% to 8,972.26.
Value turnover climbed to P4.58 billion on Monday with 716.17 million shares changing hands from the P3.83 billion with 445.66 million issues seen on Friday.
Decliners outnumbered advancers, 118 versus 45, while 53 names closed unchanged.
Net foreign selling grew to P361.26 million on Monday from P297.97 million on Friday. — AHH with Reuters
This article originally appeared on bworldonline.com