Share prices extended their decline Tuesday, as strong foreign selling and a lack of positive catalysts pushed the market into a sideways movement.
The benchmark Philippine Stock Exchange index (PSEi) dropped 11.21 points, or 0.18 percent, to close at 6,277.67. The broader all shares index dipped 3.21 points, or 0.09 percent, to 3,737.90.
The peso also weakened, closing at 57.1 to the U.S. dollar, down from 56.965 on Monday.
“The local stock market extended its decline as investors continued to exit amid a lack of positive catalysts,” said Japhet Tantiangco, research head at Philstocks Financial Inc. He noted that investors are also awaiting the upcoming Jackson Hole Symposium for clues on the Federal Reserve’s policy outlook.
Sectoral indices were mixed, with conglomerates advancing 0.87 percent while services declined 1.22 percent.
Market breadth was negative, with losers outnumbering gainers 101 to 86. Trading was active, with a value turnover of P6.18 billion. Foreign investors were net sellers, with outflows reaching P1.22 billion.
DigiPlus Interactive Corp. was the day’s top index gainer, jumping 11.73 percent to P30. Converge ICT Solutions Inc. was at the bottom, declining 3.54 percent to P14.
Asian stock markets traded in a narrow range Tuesday and oil prices dipped after US President Donald Trump held what he called “very good” talks with Ukrainian and European leaders on ending the war.
Hopes for a breakthrough rose after Trump said he spoke by phone with Russian counterpart Vladimir Putin after hosting Ukrainian President Volodymyr Zelensky, German Chancellor Friedrich Merz and others at the White House.
“At the conclusion of the meetings, I called President Putin, and began the arrangements for a meeting, at a location to be determined, between President Putin and President Zelensky,” Trump said.
Zelensky said he was ready for what would be his first face-to-face talks with Putin since Russia’s invasion nearly three and a half years ago.
Oil prices, which have been volatile for several days — Russia is a major crude producer — fell back after gains on Monday.
In Asia and Europe equity investors largely stayed on the sidelines after Wall Street treaded water on Monday.
Japan’s Nikkei briefly hit a fresh intraday record before retreating to close down 0.4 percent.
Shanghai ended flat while Sydney, Seoul and Hong Kong traded lower and Singapore, Bangkok and Mumbai edged up.
In Europe London and Frankfurt were modestly lower in early trade while Paris inched up 0.2 percent.
SoftBank shares fell four percent after it said it would invest $2 billion in Intel, as the US government reportedly considers taking a 10-percent stake in the troubled US chip giant.
Fresh impetus for investors could come from a speech this week by US Federal Reserve chief Jerome Powell at the annual retreat of global central bankers in Jackson Hole.
Markets hope Powell will provide more clues about Fed plans for interest rates when it meets next month, after data last week provided a mixed picture about inflation.
“Even a nod to easing (by Powell) could be enough to trigger profit-taking, and a hint of caution could set off a scramble for the exits,” Stephen Innes at SPI Asset Management said. With AFP
