PSEi retreats on cautious trading

MANILA, Philippines — The local stock market finished in the negative territory on its return from a holiday break, as investors stayed cautious ahead of the release of the country’s October inflation data this week.

The benchmark Philippine Stock Exchange index slipped by 0.99 percent or 56.18 points to close yesterday’s session at 5,624.17.

The broader All Shares index also declined by 0.58 percent or 18.58 points, settling at 3,159.84.

Luis Limlingan of Regina Capital said the local bourse ended lower as investors reacted to the latest PMI data, which showed Philippine factory activity contracting for the second consecutive month in October.

He said weak demand continued to weigh on manufacturing output, raising concerns over the pace of domestic economic activity.

“The latest reading further dampened market sentiment as investors assessed the country’s growth outlook,” Limlingan said.

All sectors were in the red, except for holding firms, which inched up by 0.22 percent.

Services incurred the biggest loss at 2.71 percent, followed by mining and oil with a 1.51-percent drop.

Total value turnover stood at P5.27 billion.

Decliners overpowered advancers, 106 to 79, while 72 issues were unchanged.

ICTSI was the top traded stock, plunging by 3.28 percent to P811.50 per share. It was followed by BDO Unibank, which rose by 1.02 percent to P119.20, and BPI, which decreased by 1.44 percent to P92.65.

AB Capital Securities said the market is still vulnerable, as activity remains subdued, particularly among locals.

It said 5,580 remains the major support and real test of underlying demand.

“More third quarter results, CPI (consumer price index), GDP (gross domestic product) are the next catalysts that could determine whether buyers return,” AB Capital Securities said.