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The leading index slipped further on Thursday as rising cases of the coronavirus disease 2019 (COVID-19) in the country and the latest balance of payments (BoP) data weighed on sentiment and ahead of major central bank meetings.
The Philippine Stock Exchange Index (PSEi) fell 18.63 points, or 0.29%, to close at 6,256.17 on Wednesday, while the broader all-shares index fell 0.33 points, or 0.01%, to 3,381.86 rose.
“Shares in the Philippine Stock Exchange have fallen ahead of upcoming central bank meetings in Europe and Japan,” Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said in a Viber message.
“Resurgent concerns about COVID-19 risks amid the discovery of more cases in the country with Omicron subvariants weighed on the market. Our year-to-date balance of payments deficit, which is already larger compared to the same period last year, has also dampened sentiment,” said Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financial, Inc., in a Viber message.
The Philippines has recorded 910 more infections with more contagious subvariants of the Omicron coronavirus, the health department said on Wednesday. Of the total, 816 were BA.5, 42 were BA.4, and 52 were BA.2.12.1 cases.
In the meantime, the BoP of the country deficit expanded from $312 million to $1.57 billion in Juneficit in the same month last year, but narrowed slightly from the $1.61 billion gap in May.
In which fiIn the first half of the year, the BoP deficit widened from US$1.9 billion to US$3.1 billionficit in the same period in 2021.
The majority of sector indexes ended lower on Thursday, except for mining and oil, which rose 217.86 points, or 1.94%, to 11,419.39, and financials, which rose 18.65 points, or 1.25%, to 1,499 .72 rose.
Meanwhile, real estate fell 20.84 points, or 0.73%, to close at 2,821.07; Holding companies fell 40.18 points, or 0.68%, to 5,848.23; Industrials declined 16.36 points or 0.17% to 9,412.47; and Services fell 1.92 points, or 0.11%, to end Thursday’s session at 1,641.55.
Promoters outnumbered relegators, 107 versus 69, while 60 names closed unchanged.
Value turnover rose to 6.09 billion pesos on Thursday, with 807.09 million shares changing hands, from 5.03 billion pesos with 733.64 million issues the previous trading day.
Overseas buyers turned sellers again, posting net sales of P92.85 million on Thursday, up from P22.65 million in net purchases the previous trading day.
“Market direction is likely to be determined by the outcome of Thursday’s European Central Bank meeting on the start of the rate hike cycle in Europe. Markets are hedging bets on either a 25 basis point or 50 basis point rise, the latter of which may be able to support a euro that has fallen below $1 this month,” said Mr Arce of Globalinks Securities and Stocks.
He placed PSEi support at 6100 and resistance at 6500 while Mr. Tantiangco of Philstocks Financial placed support in the 6000-6150 area and resistance at 6400. — Justine Irish D. Tabile
