Stocks slip as investors stay on sidelines

MANILA, Philippines — The local stock market slipped yesterday, opening the week in the red as investors chose to stay on the sidelines.

The Philippine Stock Exchange index (PSEi) inched down by 0.02 percent or 1.14 points to close at 6,289.21.

The broader All Shares index, on the other hand, improved by 0.07 percent or 2.37 points, closing at 3,420.77.

Philstocks Financial said the local market posted a marginal decline as investors moved with caution following the Philippines’ dismal second quarter gross domestic product print.

It said Iran’s denial of talks with the United States regarding the Strait of Hormuz also weighed on market sentiment.

AB Capital, for its part, said the PSEi briefly touched 6,300 but failed to hold the level, making 6,300 the new near-term resistance.

It said turnover fell to the second-lowest year-to-date, highlighting the lack of conviction.

“One reason for the lack of activity was that ICTSI flows dried up, with gross foreign flow about 37 percent below last week’s median. With ICTSI no longer driving flows, trading was increasingly stock-specific,” AB Capital said.

“Another was reduced institutional participation, with Singapore on a public holiday and Philippine government work suspended due to inclement weather,” it added.

Total turnover value kicked off the week at P4.1 billion.

Sectors were mixed, with those in the red with the advantage. Holding firms posted the largest gain at 0.98 percent, while industrial incurred the biggest drop at 0.47 percent.

Advancers squashed decliners, 113 to 75, while 63 issues did not change hands.

ICTSI was the most actively traded stock, declining by 0.4 percent to P996 per share. It was followed by Dominion Holdings, which climbed by 1.55 percent to P11.78, and SM Investments, which rose by 1.69 percent to P603.