Stocks decline as trading volume remains low


STOCKS halted its three-day rally on Tuesday despite feeling better than expected inflation in June on low trading volume and as investors took advantage of the recent market rally.

The Philippine Stock Exchange Index (PSEi) fell 43.95 points or 0.62% to close at 6,992.43 on Tuesday. The larger all-equity index fell 16.95 points or 0.39% to close at 4,298.66.

“Philippine stocks slipped below 7,000 as investors sold on the news with the release of the June CPI (Consumer Price Index), which was an improvement from the previous reading.” said Luis A. Limlingan, sales manager for Regina Capital Development Corp. in a Viber. a message.

“There was very little enthusiasm about the confirmed continued deceleration in inflation, which means it was already factored in by the market,” said Christopher John Mangun, head of research at AAA Southeast Equities, Inc. in an email.

“Trading volumes remain below the daily average and roughly half of what we saw when the market rallied at the start of the year. This tells us that risk appetite may be at its peak, and so are techniques, ”added Mangun.

Turnover in value rose to 5.1 billion pesos on Tuesday with 2.51 billion in issues traded against 4.31 billion pesos with 1.79 billion shares traded the day before.

The Philippines Statistics Authority reported that headline inflation stood at 4.1% in June, falling from 4.5% recorded in May and the slowest rate in six months or since 3, 5% recorded in December 2020. However, this was higher than the 2.5% recorded in June of last year.

The June figure was below the median of 4.3% in a Business world survey conducted at the end of last week. It is also within the limits of the estimate of 3.9% to 4.7% given by the Bangko Sentral ng Pilipinas for the month, but remains above the central bank’s target of 2-4% for the month. ‘year.

“Investors may have chosen to sit on the sidelines as US markets closed on Monday,” Timson Securities, Inc. trader Darren Blaine T. Pangan added in a Viber message.

The majority of sector indices closed in the red Tuesday with the exception of services which rose 8.02 points or 0.49% to 1,628.06.

At the same time, real estate lost 35.15 points or 1.03% to 3,368.25; the holding companies fell by 51.78 points or 0.73% to 7,010.53; manufacturers lost 48.39 points or 0.49% to close at 9,738.24; financials fell 3.51 points or 0.23% to 1,512.42; and mining and petroleum lost 9.42 points or 0.09% to 9,867.90.

The declines beat the advances, 112 to 96, while 52 names closed unchanged.

Net foreign sales slowed to P37.55 million on Tuesday from P82.10 million on Monday.

Mr. Pangan of Timson Securities expects the index to trade between 6,820 and 7,080 on Wednesday.

“The absence of potentially positive catalysts in the short term will encourage profit taking,” said Mr. Mangun of AAA Southeast Equities. “The PSEi looks bullish around the 7,000 area and may pull back to stronger support levels.” – Keren Concepcion G. Valmonte

Source link

Previous Video conferencing software market size and forecast to 2021-2028 with key players
Next Skype for Business Online will be deactivated in August 2021

No Comment

Leave a reply

Your email address will not be published. Required fields are marked *