Stocks wobble on budget issues, global slowdown

MANILA, Philippines — The stock market stayed in negative territory yesterday as market investors expressed concern over the delay in the approval of the 2019 budget as well as the slowdown in the global economy.

The benchmark Philippine Stock Exchange index (PSEi) lost 74.98 points, or 0.94 percent, to end below the 7,900 mark again at 7,880.82.

Likewise, the broader All Shares gauge was down 25.77 points, or 0.52 percent, to end at 4,863.15.

All other gauges were down as well with the mining and oil and services leading the decliners as these sectors succumbed to the market’s overall negative bias.

Total value turnover reached P7 billion. Market breadth was negative, 121 to 71 while 45 issues were unchanged.

“Reports of a possible presidential veto on the national budget and further cut in global growth forecasts dampened trading sentiment today. There’s not much news to really reverse the trend as well,” said Astro del Castillo, managing director at First Grade Finance Inc.

However, Del Castillo said consolidation around these range and toward the 8,000 level is still considered healthy for the local market.

“It could be a good spring board once good news are up in the air,” he said.

Expect the PSEi to trade sideways next week as trading is expected to be a short one and most are already in a long break, he said.