Stock index ends lower as investors turn cautious

MANILA, Philippines — The stock market finished in negative territory yesterday, trading mostly sideways throughout the day in what is generally a stock market that has been lethargic for weeks now.

The benchmark Philippine Stock Exchange index (PSEi) went down by 29.61 points or 0.37 percent to end at 7,843.41.

Likewise, the broader All-Shares gauge was down by 12.13 points or 0.25 percent to finish at 4,833.29.

All other indices were also down, marking yet another red letter day.

Total value turnover was thin, a reflection of market investors’ lack of appetite.

Market breadth was negative, 104 to 89 while 44 issues were left unchanged.

Christopher Mangun of Eagle Equities gave this comment: “Most Asian equities’ markets traded in a tight range yesterday ahead of a Federal Reserve policy meeting. Investors are expecting a dovish tone from the US central bank.”

Mangun said the PSEi ended lower as expected after bouncing off resistance at 7,900.

Trading volumes were also thin as investors remain cautious.

Foreign buying reached P3.36 billion and foreign selling was at P3.43 billion.

Philstocks Financials said the market generally does not have enough catalysts to move.

“The market snapped the five-day streak amid profit taking and lack of catalyst,” Philstocks said.

Other traders said the market is simply to shy to break away above the 7,900 level as it is still waiting for other prime movers, which may possibly come from the central bank’s meeting on Thursday.