PSEi Continues Correction Slide

The PSEi remained in negative territory for the fourth consecutive day yesterday, losing 25.30 points or -0.47% to close at 5,369.60, on the back of profit-taking, renewed concerns for the Euro-zone and disappointing export data. Most sectors closed in the red led by the holding firms which fell 0.99%, industrials giving up 0.68%, services losing 0.03%, mining & oil shedding 0.43%, and property drifting down 0.15%. Financials were the only sector to end the day on a positive note gaining 0.48%. SM(-2.58%) , AC(-1.38%) and URC(-2.75%) were the day’s top laggards while MER (+2.48%), while AGI (+2.06) and MBT (+1.33%) were the top performers. Market breadth was negative with 84 declines outnumbering 66 advances and 56 stocks unchanged. Value turnover was at Php7.07 billion.

The net foreign direct investments (FDI) inflows in the country registered at US$108 million in July, a significant turnaround from the US$261 million net outflow in the same period last year. This brought net FDI inflow for the first seven months to U$1.025 billion, higher than the US$568 million recorded in the same period last year. According to the Bangko Sentral ng Pilipinas, all FDI components posted positive balances during the month, which reflected investors’ growing optimism on the country’s improving macroeconomic fundamentals.

According to a report by the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI), car sales climbed by 6% to 111,582 units in the first nine months of the year on the back of strong economic growth of the country and the launch of new models. CAMPI members sold 12,856 units for the month of September, 2.8% higher from 12,509 units posted last year. CAMPI president Rommel Gutierrez said that the group is pleased with its performance for September, making up for lost sales opportunities in August.

Local government securities prices increased yesterday on the back of bargain-hunting and as investors opted for safe-haven assets following the release of disappointing exports data. In general, yields declined by an average of 5.2 basis points, led by the belly and the long end of the curve which declined 8.8 basis points and 8.7 basis points, respectively.

The Philippine peso fell during yesterday’s trading session as disappointing Philippine export data released dampened investor sentiment. The local currency shed 9 centavos to close at 41.550.

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