PSEi drops 0.17%, lack of leads cited
Credit to Author: ANGELICA BALLESTEROS, TMT| Date: Tue, 23 Apr 2019 16:24:54 +0000
THE stock market finished slightly lower on Tuesday in in a day of mixed Asian results, which analysts blamed on the lack of market-moving developments ahead of major earnings results.
The bellwether Philippine Stock Exchange index (PSEi) slipped 0.17 percent or 13.50 points to close at 7,818.93 while the wider All Shares inched up 0.09 percent or 4.36 points to 4,839.04.
Sectoral results were mixed, with the property sector the only gainer, up 0.85 percent.
More than 569 million issues were traded valued at P6.6 billion.
Losers led winners, 120 to 72, while 47 issues were unchanged.
P2P Trade Online sales associate Gabriel Jose Perez said the sideways trading could continue without fresh catalysts.
“External issues to look out for would be movement of US markets, along with the recent upward movements of oil,” Perez added. Investors in the region were said to have moved cautiously ahead of a deluge of corporate results later in the week.
With all markets now open again after an extended Easter break, many fluctuated in morning trade but rallied by the afternoon.
Tokyo stocks ended marginally up for a third straight session, with profit-taking before 10 days of holidays in Japan weighing on the market.
Seoul, Sydney and Mumbai gained while Hong Kong, Shanghai and Singapore were down.
Investors are waiting for a number of major earnings releases expected this week, including Amazon, Facebook, Microsoft, Exxon Mobil and auto maker Tesla.
“Some of the world’s biggest technology companies are reporting earnings this week as well as a raft of the big European banks,” Nick Twidale, chief operating officer at Rakuten Securities Australia, said in a note to clients.
“Investors will be hoping for some better-than-expected results from both groups to keep the topside momentum in global equities, however if the data starts to show a significant slowing across these key industries then expect both stocks and risk trades to start to come under some heavy pressure.”
Aerospace giant Boeing will report earnings on Wednesday for the first time since a deadly March 10 plane crash plunged the company into crisis-mode.
Financial analysts have already slashed their 2019 profit forecasts after Boeing announced earlier in April it was cutting its monthly production of the 737 by about 20 percent.
In early morning trade in Europe, London climbed while Frankfurt and Paris fell slightly.
Separately, Sri Lankan stocks plunged by 2.6 percent — their biggest drop in four years — as the Colombo Stock Exchange reopened for trading after terror attacks on Easter Sunday killed more than 300 people.
Oil prices climb
While equity traders were generally cautious, oil prices continued their rally on Tuesday, jumping to near six-month highs after the US cracked down on Iranian oil exports.
The White House announced Monday it was calling an end to six-month waivers that had exempted countries from unilateral US sanctions on Iranian oil exports.
Starting in May, these countries — China, India, Turkey, Japan, South Korea, Taiwan, Italy and Greece — would face sanctions if they continue to buy the oil.
“This points to a big drop in the supply side, which boosts the commodity’s price. Iran’s daily oil output amounts to 1.3 million barrels, according to latest figures in end March,” said Margaret Yang Yan, market analyst at CMC Markets Singapore.
But she said that “the sustainability of oil’s rally depends on Saudi and other OPEC members’ actions to increase oil supply in the month to come.”
Stephen Innes, head of trading and market strategy at SPI Asset Management, said rising prices meant $80 a barrel was now a “possibility”.
With a reports from AFP
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