Philippine stock closed for the fourth straight day on Tuesday as the market faced a slightest squad against Ferdinand R. Marcos, Jr.
The Philippine Stock Exchange Index (PSEI) fell 0.85% or 54.33 points to 6,325.42, while the broad all-stock index fell 0.35% or 13.41 points to 3,780.08.
“As investors digest Marcos’ latest SONA, local markets have expanded and declined,” said Japhet Louis O. Tantianco, research manager at Philstocks Financial Inc. in a Viber message. “Investors are frustrated because Sona has not mentioned some of the most pressing issues at the moment, including online gaming regulations, U.S.-Phillipino trade relations and fiscal merger plans.”
In his fourth Sona, Mr. Marcos talks about economic growth, food security, energy reform and social services, but misses topics such as online gambling and a 19% tariff on the Philippines’ exports to the United States, which will take effect on August 1.
“The PSEi declared as the market is still digesting the news that Bangko Sentral ng Pilipinas (BSP) is set for two more rate cuts for this year. Also, prices are already reflecting the sentiments of the investors regarding the earnings of various companies,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
The Philippines Central Bank said on Monday that it is committed to maintaining its loose bias and will lower its policy tax rates twice this year, although the timing will depend on economic growth and inflation.
BSP Governor Eli M. Remolona, Jr. “We are still in the same remission cycle,” told Reuters. “We are doing the baby steps. It’s a good sign, which means we’re on track.”
Sentral Ng Pilipinas in Bangkok is closely monitoring economic indicators to guide its decisions, including whether to implement a tax reduction at the upcoming August 28 policy meeting. He stressed that weak expectations of growth and expected inflation will be key triggers for further mitigation.
Almost all sectors were closed on Tuesday. Services sunk 2.01% or 45.77 points to 2,224.39; mining and oil fell 1.72% or 159.41 points to 9,093.87; holding companies fell 0.69% or 38.05 points to 5,403.78; financial retreat was 0.07% or 1.65 points to 2,236.31; industry fell 0.79 points to 9,096.97.
Meanwhile, property accounts for 0.04% or 1 point to 2,359.42.
Value turnover increased to Phillips 6.86 billion on Tuesday, with its 1.04 billion shares exchanged for 6.61 billion shares, and 1.1 billion shares traded on Monday.
The number of rejecters exceeded the forwards, 117 to 70, while 62 names did not change.
Foreign net sales on Tuesday rose to pesos 429.1 million from pesos 156 million on Monday. – Revin Mikhael D. Ochave and Reuters
