Philippine Market Recap July 16, 2018
Market Recap
Philippine share prices were lower, brushing off the firmer Wall Street lead as investor caution dominated ahead of the release of key Chinese economic data, which is expected to show signs of a slowdown.
But while broader concerns about the US-China trade war continue to temper risk appetite, the absence of any escalation of rhetoric out of Beijing or Washington over the past few days is helping support sentiment, as are expectations of strong H1 earnings.
The benchmark PSEi lost 29.74 points or 0.40% to close at 7,369.44. Meanwhile, the broader All Shares index shaved off 12.29 points or 0.27% to 4,462.60 at the closing bell.
China’s economic growth slowed as expected in Q2 as the government’s efforts to tackle debt risks crimp activity and an intensifying trade war with the United States threatens to knock exports.
The Chinese economy grew 6.7% in Q2 from a year earlier, cooling slightly from the first quarter, the National Bureau of Statistics said on Monday.
Activity data for June also indicated slowing momentum, backing views that growth is cooling, with some analysts calling for the government to take stronger measures to support the economy.
A government effort to rein in financial risk and an escalating trade war with the United States are expected to dent China's economic growth prospects.
Investors also cashed in on gains after the Philippine Stock Exchange index (PSEi) rose for four consecutive days.
With several blue chip issues having racked up 10% gains in the last two weeks, investors chose to take profits.
More than 919.843-mil shares, valued at P4.277-bil, changing hands. Market breadth was negative with decliners outweighing advancers, 90 to 82, with 55 issues unchanged.
Gainers: URC (+2.14%), PCOR (+1.74%), RLC (+1.33%), AC (+0.78%), MER (+0.73%)
Laggards: MPI (-3.06%), MEG (-2.78%), EDC (-1.70%), SM (-1.64%), ALI (-1.46%)
