PHL stocks drop on uncertainty over US-Iran talks

PHILIPPINE SHARES retreated on Tuesday as investors pocketed their profits and took a cautious stance amid persistent geopolitical uncertainty and a lack of fresh trading drivers.

The Philippine Stock Exchange index (PSEi) dropped by 1.56% or 96.24 points to close at 6,037.17, while the broader all shares index fell by 1% or 33.67 points to end at 3,319.29.

“The local market declined as geopolitical concerns offshore and weakening local economic outlook continued to weigh on investor confidence. The lack of a positive catalyst also urged investors to sell positions for the day,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

“The local bourse ended lower after profit taking following gains over three straight sessions as investors closed positions to end the first half of the year. Market sentiment turned cautious amid mixed signals on ongoing US-Iran peace talks,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. “Overall risk appetite remained subdued.”

Iranian and US negotiating teams were due in Doha this week, but Iran said on Monday no meeting had been scheduled as weekend missile fire from both sides tested the interim ceasefire to end the four-month-old war, Reuters reported.

The disagreement over whether the sides would even meet underscored the fragility of a June 17 accord to pause a conflict that has disrupted global oil flows through the Strait of Hormuz.

The US and Iran gave themselves at least 60 days to implement the 14-point memorandum of understanding to extend an April ceasefire, discuss Iran’s nuclear program and negotiate a permanent truce. But progress has been halting, with each side accusing the other of violating agreed terms.

Israel has not joined the US-Iran peace talks and has distanced itself from the agreement.

All sectoral indices closed in the red on Tuesday. Financials slid by 2.67% or 50.85 points to 1,850.84; holding firms sank by 2.16% or 95.77 points to 4,338.6; mining and oil dropped by 2.09% or 296.89 points to 13,844.85; property fell by 1.11% or 21.05 points to 1,863.65; industrials retreated by 0.58% or 48.85 points to 8,326.10; and services dropped by 0.4% or 12.98 points to 3,188.

Decliners outnumbered advancers, 112 to 78, while 40 names were unchanged.

“Century Pacific Food, Inc. was the day’s index leader, climbing 1.64% to P31. DigiPlus Interactive Corp. was the main index laggard, falling 4.88% to P11.70,” Mr. Tantiangco said.

Value turnover went up to P6.74 billion on Tuesday with 531.33 million shares traded from the P5.18 billion with 861.45 million issues that changed hands on Monday.

Net foreign selling was at P342.22 million, a reversal of the P311.20 million in net buying recorded in the previous session. — Alexandria Grace C. Magno with Reuters