Stocks retreat on thin trades, market awaits economic data

MANILA, Philippines — The stock market slipped anew yesterday, closing 22.30 points, or 0.29 percent, to settle at  7,555.27 as investors opted to stay on the sidelines while waiting for fresh economic data.

Likewise, the broader All Shares gauge was down by 8.84 points or 0.19 percent to finish at 4,620.49.

Justino Calaycay of Philstocks Financials said yesterday’s session showed that investors’ lack of conviction to move in either direction is seen in the low value turnover – a measure of participation –which today even fell short of the P5 billion mark.

“On a day the market retreats, this is generally a good sign. However, breadth is widely negative,” Calaycay said.

He said market investors would keep a close watch on the Bangko Sentral’s decision on interest rate today.

“With domestic inflation hitting the high-end of the official targets, it is highly likely the BSP will alter monetary policy – either tweak policy rates higher, raise banks’ reserve requirements or ramp up open market operations. Our view is a 25 basis points adjustment in target rates,” Calaycay said.

On a more positive note, he added the early trends in first quarter profits among listed companies seem to fall in line with expectations –mid–to–high teens.

He said this could be the catalyst investors are waiting for.

The rest of the counters, meanwhile, were a mixed bag with the industrial, mining and oil and property indexes closing in positive territory.