Net outflows, factory data drag PSEi
Credit to Author: Tyrone Jasper C. Piad| Date: Tue, 03 Dec 2019 16:22:38 +0000
NET foreign outflows and the soft growth in manufacturing activity last month prompted the stock market to retreat on Tuesday, but remained in the 7,800 territory.
The benchmark Philippine Stock Exchange index (PSEi) slid by 0.28 percent or 22.01 points to close at 7,855.18, while the wider All Shares fell 0.12 percent or 5.48 points to end at 4,681.20.
“The index traded in the red [on Tuesday] upon the resumption of net foreign selling and following the decline in US markets last night,” Papa Securities sales associate Gabriel Jose Perez said.
Net foreign selling on Tuesday reached P156 million, reversing the net foreign buying of P359 million the day before.
The bourse’s retreat mirrored that on Wall Street, with the Dow Jones, S&P500 and Nasdaq dipping by 0.96 percent, 0.86 percent and 1.12 percent, respectively.
“Markets should still be dictated by foreign flows and US market movement in the coming days,” Perez said.
Meanwhile, Philstocks Financial Inc. said in a market comment: “[D]ismal manufacturing data sent the local bourse down.”
The latest IHS Markit survey showed that growth in the country’s manufacturing sector weakened to 51.4 in November from 52.1 in October because of a slowdown in production and new orders.
Asian markets were mixed. Shanghai climbed by 0.31 percent, Thailand inched up by 0.07 percent and Vietnam added 0.17 percent. In contrast, Tokyo lost 0.64 percent, Hong Kong fell 0.16 percent, Seoul dropped by 0.38 percent and Jakarta shed 0.21 percent.
In Manila, sectors were mixed. Financials, services and property were up, while the rest declined.
Volume turnover reached 453.9 million amounting to P4.84 billion.
Winners led losers, 90-88, while 53 issues were unchanged.