SHARES stayed in negative territory on Tuesday as trading remained slim due to a lack of fresh leads.
The 30-member Philippine Stock Exchange index (PSEi) fell 0.15% or 11.85 points to 7,646.20, remaining in the red for the third consecutive day.
The broader all-shares index also dropped 0.22% or 10.27 points to finish at 4,652.46.
“All important data have been released, and we are at the start of the lean trading months until August. Earnings are just so-so, so I think PSEi will be in a consolidation phase and possible downside over this lean season until ghost month. Investors are looking for catalyst to move forward and they can’t have any at the moment,” IB Gimenez Securities, Inc. Research Head Joylin F. Telagen said via text.
Positive sentiment from Wall Street’s close on Monday also failed to lift the market. The Dow Jones Industrial Average gained 1.21% or 298.20 points to 25,013.29. The S&P 500 index climbed 0.74% or 20.04 points to 2,733.01, while the Nasdaq Composite index firmed up 0.54% or 39.70 points to 7,394.04, as investors welcomed the easing of trade relations between the United States and China.
The US and China have reportedly put threats of tariffs on hold as they deliberate on trade issues.
“Although it was a positive start on Wall Street’s leads in the morning, the PSEi gradually traded lower on account of the Hong Kong market being closed today, and volumes remaining tepid, limiting any advance,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile phone message.
Meanwhile, Asian counterparts ended mixed on Tuesday affected by rising oil prices and developments on trade relations.
Most Southeast Asian stock markets were subdued on Tuesday, hurt by a strong dollar that crimped demand for emerging market assets, while Indonesia held firm, gaining over 1%.
The dollar hovered near five-month highs against a basket of currencies, boosted by a respite in US-China trade tensions.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose a touch, up 0.10%. Indonesian shares, however, snapped three sessions of losses to climb over 1%, with financials and consumer stocks leading.
Back home, industrials was the lone sectoral counter that gained on Tuesday, rising 0.45% or 49.97 points to 10,946.98.
Mining and oil plunged 1.58% or 161.26 points to 9,986.28, while financials shed 0.80% or 15.24 points to 1,880.51. Property slipped 0.41% or 15.80 points to 3,804.78; services edged down 0.21% or 3.25 points lower to 1,523.39; while holding firms ended relatively flat with a 0.01% or 0.94-point decline to 7,513.22.
Turnover was valued at P4.78 billion after some 1.07 billion issues switched hands, slightly up from Monday’s P4.19 billion.
Decliners beat advancers, 110 to 78, while 45 names closed flat.
Foreign investors continued their selling mode, with net outflows amounting to P628.52 million, higher than the previous session’s P568.47 million. — Arra B. Francia with Reuters