Stocks weaker on first day of Q2

The PSEi declined at the end of a volatile week due to renewed concerns over Russia’s invasion of Ukraine and its conflict with the West.

The main index dropped 50.59 points or 0.70 percent to close at 7,152.88 as the Holding Firms counter led the retreat of all sectors. Volume weakened to 15.2 billion shares worth P5.4 billion as losers beat gainers 106 to 65 with 46 unchanged.

“Philippine shares were sold ahead of the weekend as traders wrapped up a rocky first quarter,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that, “Hopes of a possible peace deal between Russia and Ukraine quickly evaporated as President Vladimir Putin threatened to halt contracts supplying Europe with a third of its gas unless they are paid in rubles.”

AB Capital Securities said “Philippine share prices tracked the decline in foreign equity markets, following a 550-point drop in the Dow Jones index triggered by a yield curve inversion. A yield curve inversion is widely regarded as a warning signal that the economy is headed for a downturn.”

Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “The local market declined as investors took profits from its preceding 2-day rally.”

He added that, “Market sentiment took a hit from the negative cues from Wall Street amid inflation worries caused by the 5.4 percent increase in the US’ March Personal Consumption Expenditures Price Index, and recession concerns as their yield curve nears inversion.”

The contraction of China’s manufacturing sector with its March Caixin/Markit manufacturing PMI registering 48.1 also weighed on the market.