PSEi ends lower on profit taking, Wall Street decline

Philippine stocks ended lower on Wednesday on Wall Street’s profit-taking and losses on the release of a dismal US Consumer Confidence Index report.

The Philippine Stock Exchange (PSEi) benchmark index fell 42.22 points, or 0.66%, to close at 6,303.19 on Wednesday, while the broader all-shares index fell 11.56 points, or 0.34%, at 3,389.12 ended.

“Philippine stocks gave up gains after a disappointing US consumer confidence index,” Luis A. Limlingan, chief commercial officer of Regina Capital Development Corp., said in a Viber message on Wednesday.

“The local stock market retreated this Wednesday as investors took profits from the previous three-day rally. Concerns about the fall in consumer confidence in major economies [also] weighed on market sentiment,” said Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financial, Inc., in a Viber message.

Cristina S. Ulang, First Metro Investment Corp.’s head of research, added that the market is in a “selling rally” as investors are quick to capitalize on recent gains.

Wall Street ended sharply lower on Tuesday in a broad sell-off as dismal consumer confidence data dampened investor optimism and fueled worries about the recession and upcoming earnings season, Reuters reported.

The S&P and Nasdaq fell about 2% and 3%, respectively, with Apple, Inc., Microsoft Corp. and Amazon.com weighed the most. The blue chip Dow lost about 1.6%.

US consumer confidence fell to a 16-month low in June as concerns about high inflation led consumers to expect the economy to slow significantly or even slide into recession in the second half of the year.

At home, sector indices ended mixed on Wednesday. Real estate fell 62.83 points, or 2.14%, to 2,867.64; Financials fell 9.68 points, or 0.65%, to 1,473.43; and holding companies lost 24.04 points or 0.40% to close at 5,922.66.

Meanwhile, mining and oil rose 98.16 points, or 0.88%, to 11,134.46; Services rose 4.50 points, or 0.26%, to 1,715.38; and Industrials gained 5.34 points, or 0.05%, to close at 9,043.56.

Losers narrowly beat movers, 98 versus 97, while 45 names ended unchanged.

Value turnover fell to 4.91 billion pesos on Wednesday, with 532.42 million shares changing hands, from 7.46 billion pesos with 847.09 million issues observed on Tuesday.

Net overseas sales rose to P645.8 million from P157.91 million the previous trading day.

Regina Capital’s Mr. Limlingan said investors will focus on the end-of-semester window dressing and inauguration of President-elect Ferdinand “Bongbong” R. Marcos, Jr. to close trading for the month on Thursday. — Luisa Maria Jacinta C. Jocson with Reuters