Index eases on lack of positive leads

MANILA, Philippines - The main composite index’s return to positive territory on Tuesday turned out to be temporary even as the index managed to stay in the 7,000 level.

The  Philippine Stock Exchange  index (PSEi) failed to stay afloat, finishing  13.52 points lower at 7,047.08. Likewise, the broader All Shares index finished in negative territory at 4,053.70, down 0.65 points or 0.01 percent.

Analysts said the PSEi failed to hold up due to the absence of positive leads.

Market investors, analysts said have already factored in the recent string of positive developments such as the OFW remittances, higher sin taxes and expectations that the Bangko Sentral ng Pilipinas would likely keep interest rates steady.

The financials and holding firms both closed lower while the rest ended in negative territory.

Value turnover reached P6.40 billion. Decliners edged out advancers 99 to 67 while 58 stocks were left unchanged.

Astro Del Castillo, managing director of First Grade Finance Inc. said the market is expected to test the 7,100 level.

Other  Asian markets were also down yesterday after downbeat US manufacturing data raised questions about how aggressive the Federal Reserve would be when hiking interest rates.  MSCI’s broadest index of Asia-Pacific shares outside Japan was unchanged by early afternoon.

Shanghai shares gained 0.4 percent and Hong Kong’s Hang Seng rose 0.3 percent. Thai and Singaporean shares also advanced.

The decliners included Japan’s Nikkei, which lost 0.2 percent on a stronger yen. South Korea’s Kospi dipped 0.4 percent.