Falling stocks in profit taking after inflation data



[ad_1]

PSE
PHILSTAR / KRIZ JOHN ROSALES

Local stocks fell on Wednesday, despite an increase in the intraday market, as investors earlier applauded the slower-than-expected impression of inflation in January but ended up succumbing to profit taking.

The Philippine Stock Exchange (PSEI) benchmark index fell 0.13% or 11.03 points to 8,058.45 yesterday, failing to sustain intraday gains that saw the main index rise to the 8,200 level.

The broader index of all stocks, in turn, closed virtually stable at 4,893.48, 0.01% or 0.94 point higher than the previous day.

"It looks like profit was the name of the game today, when the index plunged directly, with 155 points from its intraday high, to close at 8,058.45. The index rose initially in the morning, as the market welcomed the January inflation rate of 4.4%, "said Pope Securities Sales Associate Gabriel Jose Perez in an e-mail on Wednesday.

Investors initially applauded the better-than-expected inflation report for January, which saw the print fall to 4.4 percent. This is lower than the 4.5% market consensus.

IB Gimenez Head of Securities Research, Joylin F. Telagen, also noted that investors opted to profit from gains in market closing after receiving the lowest inflation rate.

"After the non-trading day in celebration of the Chinese New Year, investors are back and applauded the lower-than-expected rate of inflation, which could also lead to the first monetary meeting of the BSP (Bangko Sentral ng Pilipinas) to maintain the unchanged interest rates. " Telagen said in a text message.

The BSP Monetary Policy Council will meet on Thursday for its first meeting of the year, where analysts expect rates to remain unchanged in the current range of 4.25-5.25%.

The counter for the holdings was the only sub-index that ended with a loss, falling 1.23% or 98.92 points to 7,931.10.

The remainder rose, led by mining and oil, which rose 1.37 percent or 118.36 points to 8,739.30. Services advanced 0.74% or 12.05 points to 1,620.51; the finances rose 0.74% or 13.62 points to 1,853.18; industrialists rose 0.54% or 63.93 points to 11,799.38; while the property appreciated 0.48% or 19.27 points, to 4.001.55.

Foreign investors continued to buy with net acquisitions of P947.17 million, although lower than the net inflow of P1.01 billion on Monday.

Around 2.84 billion issues, valued at P7.32 billion hands exchanged, practically unchanged from the previous session's turnover.

Bettors were nearly twice the declines, 140 to 76, while 42 names remained unchanged.

Abroad, Wall Street indices advanced ahead of US President Donald J. Trump's State of the Union address. The Dow Jones Industrial Average rose 0.68% or 172.15 points to 25,411.52. The S & P 500 index rose 0.47 percent or 12.83 points to 2,737.70, while the Nasdaq Composite index added 0.74 percent, or 54.55 points, to 7,402.08. Asian indices mirrored the rise of Wall Street, ending mostly high on Wednesday. – Arra B. France

[ad_2]

Source link