Index eases on lackluster trading

MANILA, Philippines - Investors were mostly undecided yesterday due to the absence of market-moving news, resulting in a flat trading session for the local bourse.

The Philippine Stock Exchange index (PSEi)fell 0.06 percent or 4.49 points to 7,275.38, marking the third straight session the main index ended in the red.

“It seems like it is the end of the honeymoon season in May. The market is headed for a consolidation especially that there are no market moving news,” Astro del Castillo, managing director of First Grade Finance Inc., said in a phone interview.

The consolidation will be healthy for a basebuilding ahead of another run-up, Del Castillo said.

It is already the end of the earnings season for the local bourse as conglomerates completed reporting first quarter performance last week.

The local market bucked the trend in Wall Street that rose anew on Friday given news about positive leading economic indicators and improved consumer confidence.

Locally, most counters were in the red, paced by mining and oil that dropped 0.53 percent or 93.79 points to 17,594.47. Property firms rose 0.3 percent or 8.93 points to 2,989.74.

Turnover value eased to P8.72 billion from P13.42 billion on Friday. Decliners outplayed advancers, 83 to 68, while 45 stocks did not change.

For the rest of the week, Del Castillo said the main index might hover around the 7,200 to 7,300 level.