Stocks go down on profit taking before US data

PHILIPPINE STOCKS retreated anew on Thursday as traders pocketed their profits from the market’s recent climb amid a lack of fresh leads, with investors looking ahead to key US inflation data set for release overnight.

The bellwether Philippine Stock Exchange index (PSEi) went down by 0.78% or 47.54 points to end at 6,031.48, while the broader all shares index dropped by 0.36% or 12.49 points to 3,446.96.

“The PSE ended lower as investors engaged in profit taking despite the peso’s stability against the US dollar,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“The lack of fresh catalysts kept buying interest muted, leading to a cautious trading session. As a result, market participants opted to lock in gains following recent advances,” he added.

The market dropped to follow Wall Street’s decline on Wednesday, Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

“Investors traded cautiously while waiting for the US’ November inflation data, which are expected to give clues on the Federal Reserve’s policy outlook,” he said.

Wall Street’s main indexes closed lower on Wednesday, with the S&P 500 and the tech-heavy Nasdaq sinking to three-week lows as nagging worries about the artificial intelligence trade weighed on technology stocks, Reuters reported.

The Dow Jones Industrial Average fell 228.29 points or 0.47% to 47,885.97. The S&P 500 lost 78.83 points or 1.16% to 6,721.43. The Nasdaq Composite lost 418.14 points or 1.81% to 22,693.32.

On the monetary policy front in the US, Federal Reserve Governor Christopher Waller, who is expected to be interviewed by US President Donald J. Trump as a candidate for the next Fed chair, said the central bank has room to cut interest rates amid signs of job market weakness.

Investors were also watching out for a US inflation report for November later in the day that will not include the month-on-month measure since a record government shutdown prevented data collection for October.

Forecasts are centered on an annual rise of 3% in core inflation last month.

All sectoral indices closed in the red on Thursday. Property sank by 1.61% or 36.94 points to 2,245.43; holding firms dropped by 0.91% or 43.53 points to 4,710.15; industrials fell by 0.43% or 37.83 points to 8,659.91; mining and oil went down by 0.4% or 57.97 points to 14,283.24; financials decreased by 0.33% or 6.86 points to 2,034.98; and services retreated by 0.32% or 7.82 points to 2,400.87.

Decliners narrowly beat advancers, 95 to 91, while 66 names closed unchanged.

Value turnover went up to P12.82 billion on Thursday with 1.34 billion shares traded from the P5.99 billion with 1.56 billion issues that changed hands on Wednesday.

Net foreign selling went down to P361.16 million from P706.91 million. — Alexandria Grace C. Magno with Reuters