Manila: The local bourse's main index closed in the negative territory ahead of the President's fourth State of the Nation Address (SONA) Monday, but the peso was able to keep its footing against the US dollar. The Philippine Stock Exchange index (PSEi) shed 0.52 percent to 6,379.75 points, and the broader All Shares by 0.09 percent to 3,793.49 points. Only the Services index gained during the day after it rose 1.52 percent. On the other, Mining and Oil registered the highest drop at 1.69 percent and was trailed by the Property, 0.81 percent; Financials, 0.66 percent; Holding Firms, 0.63 percent; and Industrial, 0.57 percent.
According to Philippines News Agency, volume reached 1.11 billion shares amounting to PHP6.61 billion. Decliners led advancers at 108 to 90 while 48 shares were unchanged. Luis Limlingan, Regina Capital Development Corporation head of sales, said investors waited for any mention during the SONA on 'which industries might receive more support from the government, face stricter regulation, and the overall direction of the local economy.' External developments and rebalancing of the PSEi also factored in during the trade, he said.
'While the trend remains upward, investors should remain mindful of potential near-term consolidation as market sentiment evolves,' Limlingan added. Asked whether investors' sentiments in the local bourse have somewhat noted government measures to encourage more investments in the local economy, Limlingan said it is 'a bit difficult to make that comparison because much of the PSE's performance has been weighed by geopolitical tensions, most notably that of the tariff wars and Israel/Iran conflict among others.'
He, however, noted that 'think the recent policies have been very helpful in terms of attracting the foreign funds especially with the reduction of sales tax to 0.1 percent', referring to a policy under the Republic Act (RA) 12214 or the Capital Markets Efficiency Promotion Act (CMEPA), which took effect last July 1. Prior to CMEPA, stock transaction tax (STT) is at 0.6 percent, with the rate reduction aimed at encouraging more investments in the domestic capital market.
On the other hand, the peso managed to remain afloat against the US dollar despite negative sentiments, and closed the day at 57.2 against the US dollar from 57.11 Friday last week. It opened the day weaker at 57.13 from its 56.75 start in the previous session. It traded between 57.21 and 56.98, bringing the day's average in 57.11. Volume reached nearly USD1.7 billion, up from the USD1.64 billion in the previous session.
