THE BENCHMARK INDEX sank to the 7,100 level on Thursday on profit taking ahead of the long weekend and following the release of data showing that the government’s outstanding debt reached a new record high at end-September.
The Philippine Stock Exchange index (PSEi) fell by 1.88% or 137.28 points to close at 7,142.96 on Thursday, while the broader all shares index dropped by 0.98% or 39.37 points to end at 3,957.21.
This was the PSEi’s lowest close in more than six weeks or since it ended at 7,104.20 on Sept. 16.
“The local market declined this Thursday as investors took a cautious stance ahead of the long weekend. The peso’s weakness and the negative spillovers from Wall Street weighed on today’s trading,†Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
“The PSEi corrected lower amid some healthy profit-taking ahead of the long Undas holiday weekend and a day after the outstanding National Government debt posted a new record high,†Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
Philippine financial markets are closed on Friday (Nov. 1) for All Saints’ Day.
The National Government’s outstanding debt rose to a fresh high of P15.89 trillion as of end-September, the Bureau of the Treasury (BTr) reported on Wednesday.
Data from the BTr showed that outstanding debt jumped by 2.2% from P15.55 trillion as of end-August.
Year on year, the debt stock increased by 11.4% from P14.27 trillion a year ago.
“Philippine shares ended the last trading session in the red as investors absorbed a wave of earnings reports and awaited additional results of other companies,†Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
The market declined as investors preferred to stay on the sidelines before the Nov. 5 US presidential election, he added.
Majority of sectoral indices closed lower on Thursday. Financials dropped by 2.7% or 64.87 points to 2,331.87; services went down by 2.43% or 54.19 points to 2,171.59; holding firms decreased by 1.47% or 90.23 points to 6,036.90; and industrials retreated by 0.8% or 80.26 points to 9,850.61.
Meanwhile, mining and oil climbed by 0.43% or 37.67 points to 8,654.31, and property rose by 0.06% or 1.81 points to 2,793.57.
“Wilcon Depot, Inc. was the top index gainer, jumping 3.87% to P16.10. International Container Terminal Services, Inc. was the worst index performer, plunging 4.58% to P396,†Mr. Tantiangco said.
Value turnover declined to P5.43 billion on Thursday with 803.18 million shares traded from the P5.5 billion with 742.78 million issues that changed hands on Wednesday.
Advancers outnumbered decliners, 97 against 88, while 56 names closed unchanged.
Net foreign selling rose to P1.31 billion on Thursday from P600.04 million on Wednesday. — R.M.D. Ochave
