By Arra B. Francia Reporter
SHARES tumbled on Tuesday as the lack of catalysts prevented the index from sustaining gains in the previous session.
The Philippine Stock Exchange index (PSEi) — considered a local barometer for investor confidence — went back to negative territory after closing 0.40% or 33.93 points lower at 8,419.57.
The all-shares index likewise shed 0.33% or 16.82 points to close at 5,067.16.
“Our market is still in a precarious state as rapid rise of local inflation becomes a major subject of concern for our investors as it signals an overheating economy. The lack of onshore catalysts is also keeping the market trade below its 100-day average performance,” Timson Securities, Inc. Equities Trader Jervin S. de Celis said in a mobile phone message.
The trader added that foreign investors have been on a wait-and-see mode ahead of the next US Federal Reserve meeting on March 20 to 21.
Foreign investors continued to be net sellers for the 16th straight day, dumping P480.83 million worth of local stocks on Tuesday, smaller than Monday’s net outflow of P731.72 million.
“So, I guess the trend of the PSEi will remain sideways or if it trades below 8,330 we may see the index falling down to as low as 8,000,” Mr. De Celis said.
On the other hand, Regina Capital Development Corp. Managing Director Luis A. Limlingan said the market’s decline was due to US President Donald J. Trump’s imposition of higher tariffs for aluminum and steel.
“Philippine stocks resumed the sell-off after as US, with investors still assessing Trump’s tariffs,” Regina Capital’s Mr. Limlingan said in a mobile phone message.
“The broader market retreated as shares of companies pegged to the industrials sector came under selling pressure,” Mr. Limlingan added.
Four sectoral indices edged lower, with the mining and oil sector posting the largest decline at 1.22% or 140.50 points to 11,304.68. Financials followed as it dropped 1.09% or 24.31 points to 2,189.20. Property likewise lost 1% or 38.29 points to 3,780.04, while services gave up 0.18% or 3.24 points to finish Tuesday’s session at 1,763.93.
On the other hand, industrials gained 0.29% or 34.15 points to 11,583.88, while holding firms increased 0.14% or 12.50 points to 8,438.52.
The market saw 4.85 billion issues switch hands for a value turnover of P6.56 billion, falling from the previous session’s turnover worth P7.20 billion.
Decliners outpaced advancers, 123 to 84, while 52 stocks ended flat.
Shares in MRC Allied, Inc. were the most actively traded for the day, losing 4.49% to close at 85 centavos apiece. Timson Securities’ Mr. De Celis said investors will continue trading second-tier companies instead of blue chips as they wait for a major catalyst that will push the market to new highs.