Market stays in red on last-minute selling

MANILA, Philippines — The stock market remained in the loss column on its return to action following a one-day break as investors decided to sell shares at the last minute during yesterday’s session.

The benchmark Philippine Stock Exchange index shed 0.30 percent or 19.24 points to end at 6,390.83, extending its losing streak to three days.

The broader All Shares index also declined by 0.20 percent or 7.05 points, settling at 3,443.

“Philippine shares continued to tumble as investors digested the latest policy announcement from the Fed and May inflation data which pointed to easing pricing pressures,” Regina Capital’s Luis Limlingan said.

“As expected, the Fed kept interest rates unchanged. However, the Fed’s projections showed only one rate cut is anticipated this year, citing still elevated levels of inflation,” he said.

Philstocks Financial research and engagement officer Mikhail Plopenio said the bourse is currently below the 6,400 support level.

He said April’s balance of trade deficit appeared to have weighed on investor sentiment as this poses depreciation risks to the already weakened peso.

“Also, remarks from President Marcos, stating that inflation remains as a main concern due to uncontrollable forces, tempered rate cut hopes despite it staying within the government’s target range,” Plopenio said.

Plopenio said Thursday’s net market value turnover was tepid at P4.74 billion, lower than the year-to-date average of P5.07 billion.

The sectoral gauges were a mixed bag, with property leading the way with a 1.04 percent increase.

Mining and oil, meanwhile, suffered the biggest loss at 1.02 percent, followed by holding firms which fell by 0.94 percent.

Market breadth remained negative as decliners crushed advancers, 110 to 73, while 48 issues were unchanged.