External pressures and market activities in the United States took its toll on the Philippine Stock Exchange Index (PSEi) as the market fell yesterday, reversing the sharp gains reported on Wednesday.
The bellwether PSEi shed one percent or 78.67 points to drop at 7,759.55 from 7,838.22 points the previous day. The broader All Shares index slid by three-fourths of a percent to settle at 4,644.68 points.
Regina Capital’s Luis Limlingan said that the domestic stock market reacted negatively as the US stocks concluded on mixed results on Wednesday.
“It was a sell-on-news type of session after the Federal Open Market Committee reaffirmed a gradual hike and driving the risk appetite as the ten-year US Treasury went above three percent,” he said.
US stocks are in the mix after the Federal Reserve left interest rate unchanged and the ongoing trade conflict between Washington and Beijing. Major European and Asian markets were also down, with Hong Kong and Shanghai stocks dropping two percent.
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Limlingan also cited the oil slipping to a two-week low after a gain in U.S. crude inventories worsened supply concerns. The US Energy Information Administration reported that refiners accelerated processing for the first time since late June, while exports dropped by about 1.4 million barrels per day. Saudi Arabia, meanwhile, is pumping on near-record volumes as they grew by 230,000 to 10.65 million barrels per day.
Back in the country, service and holding firms took most of the beating, shedding more than one percent. Mining and oil sector dropped by 0.22 percent after the mining exploration ban was lifted.
A total of 120 decliners outnumbered the 76 advancers, with 46 issues remaining unchanged.
ISM Communications’ stocks gained the most at 11.67 percent, while both “A” and “B” shares of Oriental Petroleum and Mining Corporation advanced by 8.33 percent. Bogo-Medellin Milling Corporation dropped 6.25 percent to led all decliners.
More than one billion shares were traded, but the total value dropped to P4.931 billion on Thursday from P7.17 billion. JG Summit Holdings, Inc. and Ayala Land, Inc. were the most actively traded issues amounting to P300 million each in total value but fared lower than Wednesday.
