Local shares continued to show signs of weakness, falling below the 6,100 level Monday amid uncertainties on the U.S. Federal Reserve’s policy decision later this week and a weakening peso against the dollar.
The 30-company Philippine Stock Exchange index closed at 6,057.43, down 51.78 points or 0.85 percent. The all shares index ended at 3,670.57, lower by 15.02 points or 0.41 percent.
The peso depreciated slightly to 57.181 against the U.S. dollar Monday from 57.1 on Friday.
Mercantile Securities said the market’s recent price movement suggests the development of a bearish market. “This technical formation reflects ongoing investor caution and lack of bullish movement,” it said.
Given the market’s recent decline, it noted that the 6,000 level will be a crucial psychological support. “A decisive break below this threshold could trigger increased selling pressure and potentially accelerating downward trend. The index needs to move above 6,200 to invalidate the weakness,” it added.
Philstocks Financial Inc. research head Japhet Tantiangco said the weakness of the Philippine peso against the US dollar also contributed to the market’s decline. “The lack of a local positive catalyst also caused investors to exit the market,” he added.
Among the indices, only the services and industrial sectors ended higher, rising by 0.99 percent and 0.32 percent, respectively.
Financials declined the most, down 2.43 percent, while holding firms dropped 1.2 percent. Property declined by 1.19 percent and mining and oil by 0.29 percent.
Value turnover reached P6 billion. Foreign investors were net sellers with outflows amounting to P473.25 million.
Converge ICT Solutions Inc. was the day’s top gainer, increasing by 6.43 percent to P11.92. DigiPlus Interactive Corp. was the main index laggard, declining by 7.04 percent to P18.50.
