Shares drop on Wall Street’s slump, lack of leads
STOCKS fell on Tuesday following Wall Street’s decline and amid the lack of positive catalysts locally.
The broader all-shares index also likewise slipped, closing at 4,502.07, down 0.76% or 34.77 points.
“I think this downward trend is just technical, as traders are going into accumulation. We have reached the support and so it always bounces back,” Summit Securities, Inc. President Harry G. Liu said in a phone interview.
Meanwhile, Regina Capital Development Corp. Managing Director Luis A. Limlingan said Wall Street’s slump also dragged the local market.
“Philippine markets were sold down heavily mostly in reaction to US equities falling on Tuesday after Goldman Sachs shocked Wall Street by missing estimates,” Mr. Limlingan said.
Goldman Sachs Group, Inc. fell short of earnings expectations on Tuesday due to a drop in quarterly trading revenue, prompting analysts to demand explanations for underperformance in an area where the bank usually outshines rivals.
The Dow Jones Industrial Average fell 113.64 points or 0.55% to 20,523.28; the S&P 500 lost 6.83 points or 0.29% to 2,342.18 and the Nasdaq Composite dropped 7.32 points or 0.12% to 5,849.47.
“Investors also remained vigilant amid US-North Korea tensions and the nearing of the French presidential election,” Mr. Limlingan added.
Asked for possible leads, Summit Securities’ Mr. Liu said: “Right now there are still no catalysts, but if you look at the papers today people are expecting the Philippines to be one of the most active ones in Asia so that will gain momentum for the market in the coming months.”
Financials was the lone sectoral counter to end in the green as it eked out a gain of 0.04% or 0.81 point to 1,874.23.
Services led losers, dropping by 1.74% or 27.94 points to 1,570.18, followed by industrials which went down by 1% or 113.25 points to 11,184.75. Holding firms also fell 1% or 77.20 points to 7,604.75; mining and oil lost 0.65% or 79.10 points to 12,004.11; and property slipped 0.59% or 19.57 points to 3,292.64.
Value turnover was slightly higher at P5.56 billion yesterday from Tuesday’s P5.05 billion, with 966.47 million shares changing hands.
Decliners outpaced advancers, 125 to 67, as 46 issues remained unchanged. Foreigners continued to dump their shareholdings, with net foreign selling logged at P306.71 million yesterday, climbing from Tuesday’s P186.37 million.
“After this month, things will be more aggressive in terms of upward pressure,” Mr. Liu said.
Most Southeast Asian stock markets also fell on Wednesday as investors favored safe-haven assets ahead of French presidential elections though tensions over geopolitical uncertainties eased.
Asian stocks excluding Japan hit their lowest since mid-March. -- A.B. Francia with Reuters