Share prices drop on lack of impetus

MANILA, Philippines — Local stocks retreated yesterday, mirroring the drop in major Asian bourses, as the lack of positive catalysts forced investors on the sidelines.

The benchmark Philippine Stock Exchange index or PSEi finished below the 6,800 mark, closing 58.72 points or 0.86 percent lower at 6,755.95.

Likewise, the broader All Shares index closed at 4,100.16, down 41.56 points or 1.00.

A total of P14.704 billion worth of shares changed hands, with decliners edging advancers, 174 to 58.

In a market report, AB Capital Securities said the PSEi tumbled to the 6,700 level on lack of positive catalysts.

Major drags yesterday were SM, SM Prime Holdings, BDO, Ayala Corp. and Universal Robina Corp.

Net foreign selling breached the P1-billion mark for the third straight session.

“Shares in the Philippines and across Asia slid as the market’s concerns toward rising inflation needed to be tamed by (US) Federal Reserve chairman Jerome Powell’s speech. China and Hong Kong stocks fell as many continued to sell consumer and health care stocks which many believed to have reached the peak of the valuations. In addition, oil fell after it was reported that oil stockpiles were mounting even after freezing temperatures across the US.  Lastly, many are anticipating a selldown on Friday with MSCI’s rebalancing finally takes place,” said Luis Limlingan of Regina Capital.