Stocks decline on window dressing

MANILA, Philippines — Local shares closed in the red yesterday as investors prepare for the nearing quarter-end window dressing.

The benchmark Philippine Stock Exchange index (PSEi) dropped a marginal 0.11 percent or 7.14 points to close at 6,595.03, while the broader All Shares index finished 0.08 percent or 2.65 points lower at 3,514.07.

“Philippine shares began the week quietly as investors start to brace themselves for the quarter-end window dressing this Friday,” Luis Limlingan of Regina Capital said.

“For the week ahead, many fund managers will digest the core PCE (personal core expenditure) report on Friday. Aside from this, there will be several speaking engagements from (US) Fed officials throughout the week, including the congressional testimony by vice chair for supervision Michael Barr on Tuesday and Wednesday and speeches by New York Fed president Williams and Fed governor Waller on Friday,” he said.

A total of P3.628 billion worth of shares changed hands yesterday. Declines outnumbered advances, 87 to 82, while 46 stocks were unchanged.

Around Asia, stocks were mixed at the start of what could be another rocky week for global markets thanks to lingering uncertainty about the banking sector.

The US Federal Deposit Insurance Corp. (FDIC) announced that First Citizens had agreed to buy Silicon Valley Bank, whose collapse this month had sparked fears of a global contagion in the banking sector.

Concerns about the banking sector’s current state roiled markets last week, prompting US President Joe Biden, German Chancellor Olaf Scholz and other European officials to try and calm investors.

Clifford Bennett, chief economist at ACY Securities, said it showed “the continuing and growing pressure on the banking system among the major Western economies.”

“No bank is immune in the current climate. The forces that lead to the crisis so far seen, of higher rates and depositor uncertainty, only continue to grow.”

Markets had rallied last week after financial authorities acted to prevent the contagion from the collapse of US regional lenders this month.