PSEi Slips As Wall Street Tech Stocks Decline
Asian markets dipped even lower on Tues as the US gained an upper hand on their trade with China through their technology sector. The long-running bull market of Wall Street has been bolstered by their Tech stocks all this time.
Following the decline of Wall Street’s Tech Stocks, the benchmark Philippine Stock Exchange (PSEi) slid anew, closing their session yesterday down to 1.53 percent, or 109.86 points, to 7,066.57. Meanwhile, the broader all-shares index was also down 1.28 percent, or 56.07 points, to 4,323.23.
According to the Papa’s securities in their note to investors, the downward pressure on Philippine equities is because investors are still not fully compensated for the risks they are taking. This remark was in reference to the Philippine 10-year bond yield of 6.4 percent (a traditionally safer investment), compared to the PSEi’s current yield which is only 6.1 percent.
This risk-averse sentiment of investors is evident on the performance of property and holding firms, which are down 2.54 percent and 2.05 percent respectively. The industrial sector is also fell 1.36 percent. Trading yesterday was relatively thin, with 623.6 million shares valued at ₱5.8 billion changing hands. There were 114 decliners against 79 gainers while 51 companies closed unchanged.
On the other hand, closing green yesterday with modest gains were oil and mining, up by 0.1 percent, and financials with 0.06 percent. Leading the most actively traded list was fast-food giant Jollibee Foods Corp., which dropped 4.21 percent to ₱259.60 per share, followed by Ayala Land Inc., down 1.6 percent to ₱37, SM Prime Holdings, down 3.52 percent to ₱34.25, BDO Unibank Inc., up 0.81 percent to ₱125 and Aboitiz Equity Ventures, down 2.7 percent to ₱54 per share.