PSE Index Loses Ground

The Philippine Stock Exchange (PSE) index lost ground today and further dropped as it neared its support level, being within 12 points of breaching it.

The Philippine Stock Exchange (PSE) Index, May 29, 2024

The market remained sluggish, and as noted in Tuesday's report, the lack of catalysts could further dampen investors' interest. The market barometer went down by 89.93 points, or 1.38 percent, to 6,411.41 points.

All of the sub-indices were in the red, with financials losing the most appeal, dropping by 2.36 percent.

Banking shares posted losses, led by BDO Unibank, which was the second most active stock. BDO Unibank struggled to a low of P130.20 after briefly hitting a high of P134.80 early on.

Services posted the second biggest loss at 1.67 percent, with port operator ICTSI, the most active with P656 million, falling by 2.66 percent to P329.60. The industrial sector lost 0.50 percent, holding firms 0.46 percent, mining and oil 0.67 percent, and property 1.24 percent.

Market analysts see the index testing the 6,400 support level. Should it be breached today, the index may further post significant losses as the lack of fresh catalysts to prop up investor sentiment remains elusive for now.

Pundits see a silver lining in a possible drop in interest rates, as the Bangko Sentral had earlier announced two interest rate cuts, each seen at 25 basis points.

Value turnover amounted to P5.4 billion with 70 gainers, 127 losers, and 40 shares unchanged. Foreign selling increased further to P3.207 billion against foreign buying of P2.444 billion, resulting in net foreign selling of P762 million.

Market bellwether SM Investments went down by P1.50 to P870, although it had a high of P880.

Among the gainers were Ayala Corp., Aboitiz Equity, Security Bank, China Bank, Aboitiz Power, Meralco, Figaro Coffee, SMC Food and Beverage, Jollibee Foods, DigiPlus, Roxas and Co., D&L Industries, Cosco Capital, AREIT, Cebu Landmasters, DoubleDragon, and Phil. Seven.

Unchanged were PNB, East West, Semirara Mining, Abacore, Robinsons Land, and Belle Corp.

The losers were San Miguel, Metrobank, Bank of PI, Ayala Land, SM Prime, PLDT, Union Bank, Apex Mining, Atlas Mining, OceanaGold, Nickel Asia, ACEN Corp., Alternergy, First Gen, Manila Water, Synergy Grid, SPNEC, AgriNurture, Century Food, Megawide, CEMEX Holdings, Monde Nissin, Universal Robina, GT Capital, JG Summit, Bloomberry, Puregold, Philodrill, Emperador, Wilcon Depot, and Converge.