Equities 3 MIN READ

Shares drop on profit taking ahead of US reports

April 25, 2023By BusinessWorld

LOCAL SHARES declined on Tuesday as investors await the release of firms’ first-quarter results and due to profit taking after Monday’s rise.

The bellwether Philippine Stock Exchange index (PSEi) slipped by 4.99 points or 0.07% to close at 6,593.39 on Tuesday, while the broader all shares index went down by 3.30 points or 0.09% to 3,506.79.

“Philippine shares closed flat as investors await earnings releases from tech names and consumer discretionary firms, as well as a slew of economic data,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said.

“On the data front, investors will get a gauge on the state of the housing prices through the new home sales numbers in March, as well as the S&P/Case-Shiller 20-city home price index data for February. Consumer confidence data for April will also be released,” Mr. Limlingan said.

Asian stocks fell broadly and the US dollar also weakened early on Tuesday, reflecting investors’ uncertainty in a busy week for corporate earnings and economic data, Reuters reported.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1.2% by 0510 GMT.

On Monday, the Nasdaq closed lower, underperforming the S&P 500 and the Dow, with pressure from high-profile mega-caps as investors awaited results from companies including Microsoft, while Tesla shares fell on concerns about its spending plans.

Philippine shares declined as some investors pocketed their gains from Monday’s rally, AB Capital Securities, Inc. Vice-President Jovis L. Vistan said in Viber message.

“It’s (the market) still on a wait-and-see mode as concerns of a global recession are keeping investors on the sidelines. Going forward, first-quarter earnings results should provide the needed guidance for market direction,” Mr. Vistan said.

Investor sentiment also remained mixed as the market awaits the policy decision of the US Federal Reserve at its May 2-3 meeting, Mercantile Securities Corp. Head Trader Jeff Radley C. See said in a Viber message.

The majority of sectoral indices went up on Tuesday except for property, which went down by 17.03 points or 0.62% to 2,708.91, and services, which declined by 5.36 points or 0.33% to 1,602.42.

Meanwhile, mining and oil climbed by 72.36 points or 0.68% to 10,694.27; industrials went up by 27 points or 0.28% to 9,392.14; financials increased by 2.93 points or 0.15% to 1,912.53; and holding firms rose by 9.21 points or 0.14% to 6,359.52.

Value turnover declined to P5.23 billion on Tuesday with 741.13 million shares changing hands from the P5.34 billion with 807.42 million issues traded on Monday.

Decliners outnumbered advancers, 106 versus 79, while 52 names closed unchanged.

Net foreign selling stood at P224.66 million on Tuesday versus the P822.04 million in net buying seen on Monday.

Mr. See placed the PSEi’s support levels at 6,368, 6,215 and 6,000 and resistance levels at 6,500 and 6,678. — A.H. Halili with Reuters

This article originally appeared on bworldonline.com

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