July 19, 2018, 5:50 am
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Shares extend retreat

Share prices ended lower Monday amid risk-aversion as investors digested a number of overseas developments that could affect local trading. 

The Philippine Stock Exchange index (PSEi) was down 29.73 points to 7,870.25, a 0.38 percent drop. 

The broader all shares index was down 23.37 points to 4,771.28, a 0.49 percent drop. 

Losers edged gainers 130 to 68 with 49 stocks unchanged. 

Trading turnover reached P4.77 billion. 

“Local shares extended their retreat below the 7,900 level, on low turnover, as investors digested geo-political tensions on the back of the US-led airstrikes on Syria last week and domestic February remittance data coming in below estimates,” said SB Equities Inc.

Gio Perez, trader at Papa Securities Corp., noted however  the market traded in the red “after some initial strength in the morning.”

“Although the PSEi closed 29 points lower at 7,870.25, value turnover was muted at only P4.8 billion, the second lowest figure for this year. Pullbacks on low volume are generally regarded as weak movements. So this shouldn’t be regarded as a definite sign that the index’s low and support of 7,834 will be breached tomorrow,” Perez  said.

“Judging from the PSEi’s sideways moves within its recent range of 7,834 to  8,050, tomorrow could even be a buying opportunity as we approach the lower end of this range,” he added.

“In terms of foreign movement, we saw today a net foreign buying (NFB) value of P139.7 million. This shouldn’t be immediately regarded as a sign that all the net foreign selling (NFS) has stopped, given that the past four NFB days since February (February 19, March 19, April 4, and April 12) were all subsequently followed by NFS days,” Perez said.

Most actively traded Vitarich Corp. was down P0.09 to P2.65. Ayala Land Inc. was up P0.10 to P40. Metropolitan Bank and Trust Co. was steady at P83.55. Ayala Corp. was down P10 to P946. Bloomberry Resorts Corp. was steady at P12.90. Metro Pacific Investments Corp. was down P0.20 to P4.73. BDO Unibank Inc. was down P0.40 to P137.90.

Most Southeast Asian shares fell on Monday tracking broader Asia, but losses were capped as an escalation of US-led strikes over the weekend in Syria seemed unlikely.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.6 percent after financials dragged Wall Street lower on Friday as results from big banks failed to enthuse investors. 

Malaysian shares inched up 0.2 percent, helped by gains in telecom stocks, and were on track for a seventh session of gains in eight.

DiGi.Com Bhd and Telekom Malaysia Bhd rose 2.2 percent and 3 percent, respectively.

Vietnamese shares fell 0.6 percent, with financials and real estate stocks pulling the index down to its lowest in over three weeks.

Indonesian shares reacted positively after government data showed Southeast Asia’s largest economy in March posted its biggest trade surplus in six months. 

An index of the country’s 45 most liquid stocks rose 0.7 percent.

Thailand’s stock market was closed on Monday for a holiday. – Reuters 
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