Stocks retreat as investors stay on sidelines in Philippines

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Share prices retreated yesterday as investors opted to stay on the sidelines with trading shortened to three sessions this Holy Week.

The stock market opened the week on a sour note, with the Philippine Stock Exchange index losing 0.42 percent or 28.87 points to end at 6,853.10.

The broader All Shares index also fell by 0.27 percent or 9.69 points, settling at 3,578.21.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the market corrected lower for the second straight session.

'The PSEi continued to correct lower into the holiday-shortened Holy Week when some market players are on vacation that could reduce trading volumes, similar to consistent patterns seen in recent years,' Ricafort said.

'Philippine shares were quietly sold down as investors prepare for a shortened week while awaiting the quarter end close,' Luis Limlingan of Regina Capital said.

Philstocks Financial's Claire Alviar said the local bourse declined as both local and overseas investors monitored the inflation rate in the region.

Alviar said the depreciation of the Philippine peso against the US dollar in the past few days likewise weighed on sentiment.

'Foreign investors also contributed to the market's decline, registering a net outflow of P246.47 million,' she said.

Monday's net market value stood at P4.61 billion.

All sectors were in the red, except for holding firms, which gained 0.10 percent. Financials posted the biggest decline at 0.87 percent, followed by industrial, which lost 0.71 percent.

Decliners pummeled advancers, 113 to 82, while 48 issues were unchanged.