Investors booked profits on Thursday after a three-day rally, with many dealers still assessing the full impact of the latest inflation and unemployment data.
“The local market pulled back as investors took profits from its preceding three-day rally,” Philstocks Research said in its Market Recap.
The PSEi dropped 39.11 points or 0.62 percent to close at 6,241.97, while the broader All Shares declined 9.61 points or 0.26 percent to 3,687.05.
“The industrials led the sectors, adding 0.51 percent. The properties were at the bottom, shedding 1.24 percent,” Philstocks said.
Gainers edged losers 91 to 85, while 60 stocks closed unchanged. Trading value reached P5.13 billion.
“Philippine investors finally took some profit after several days of rallying from the local market as many continue to assess the latest CPI (consumer price index) report and the latest geopolitical movements abroad,” said Luis Limlingan, managing director at Regina Capital and Development Corp.
“Yesterday’s benign inflation print strengthens the case for future monetary easing, supporting a more favorable outlook for equities,” he added.
The Philippine Statistics Authority (PSA) reported on Wednesday inflation in January kept a steady rate of 2.9 percent for the second month in a row, though inching up slightly from 2.8 percent a year earlier.
Jean de Castro, head of Fixed Income at Manulife Investment Management, expects inflation this year to remain within the Bangko Sentral ng Pilipinas’ target range and is not anticipated to pose a significant threat to the financial market.
Peter Garnace, equity research analyst at Unicapital Securities Corp., said investors likewise digested the December 2024 employment numbers that showed unemployment last year dropped to 3.8 percent from 4.4 percent the prior year. It was also the lowest rate since 2005.
“The low unemployment signals that the economy remains fundamentally strong, which may provide the BSP a reason to maintain interest rate unchanged next week,” said Garnace.
“Market breadth managed to stay green as earnings season has already begun with banks and consumer stocks reporting good earnings,” he added.
Most actively traded BDO Unibank Inc. lost P2.90 at P144.10. International Container Terminal Services Inc. declined by P7.80 to P370.20. Aboitiz Power Corp. closed up P2.35 at P42.75. Ayala Land Inc. lost P0.55 at P25.35. Globe Telecom Inc. shed P42 to P2,300. SM Investments Corp. declined by P4 to P826. Bank of the Philippine Islands dropped P0.80 to P127. ChinaBanking Corp. depreciated by P0.60 to P89.40. DigiPlus Interactive Corp. climbed by P0.70 to P32. SM Prime Holdings Inc. dropped P0.35 to P25.65.
