PHL shares falter on Fed meeting, profit taking

Philippine Stock Exchange index

LOCAL shares closed lower on Friday as investors lock in gains and while traders monitor the United States Federal Reserve’s Jackson Hole symposium.

THE bellwether Philippine Stock Exchange index (PSEi) fell 33.91 points or 0.49% to close at 6,786.62 while the broader all shares index dropped 0.89 points or 0.02% to end at 4,204.11.

Claire T. Alviar, Philstocks Financial, Inc. research associate, said in a mobile phone message that the local bourse finished lower on Friday due to profit taking ahead of the long weekend as Aug. 30, Monday, coincides with National Heroes Day.

Ms. Alviar also cited the United States’ Federal Reserve Jackson Hole symposium as a factor that affected the market’s performance.

“Negative sentiment from abroad affected the market with the US indices dropped overnight as investors monitor Federal Reserve’s Jackson Hole Symposium in which investors look for more details into the Fed’s plans to taper monetary stimulus,” Ms. Alviar said.

“Ayala Corp. led the index’s gainers, up by 1.93% while Aboitiz Equity Ventures, Inc. lost the most by 4.05%,” she added.

In a mobile phone message, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said the market’s performance on Friday could be attributed to the recent report of the Bangko Sentral ng Pilipinas (BSP) on the “hot money” that left the country in July.

Data released by the BSP on Aug. 26 showed that more foreign portfolio investments (FPI) left the Philippines in July as the country recorded a net outflow of $339.7 million, a turnaround from the $334.51 million net FPI inflow logged in June.

Majority of the sectoral indices ended in negative territory on Friday. Property went down 49.27 points or 1.56% to 3,093.92; mining and oil declined 137.43 points or 1.48% to 9,125.44; holding firms retreated 21.02 points or 0.31% to

6,760.88; and services decreased 4.31 points or 0.24% to 1,757.46.

On the other hand, industrials climbed 48.20 points or 0.49% to 9,847.76 and financials rose 2.46 points or 0.17% to 1,437.32.

Decliners bested advancers, 100 against 84, while 64 companies ended unchanged.

Value turnover on Friday reached P6.86 billion with 1.62 billion shares switching hands, a decline from the P9.06 billion with 2.48 billion shares traded the prior trading day.

Net foreign buying reached P631.26 million on Friday, higher than the P190.9 million net foreign buying recorded on Thursday. —

Revin Mikhael D. Ochave