RP stocks steady with no major news

Local share prices barely moved in thin trade on Monday in the absence of market-moving news and in line with Wall Street’s flat performance at the end of last week. The Philippine Stock Exchange index gained 0.13 percent or 3.88 points to 3,076.79, with less than a billion stocks worth P2.28 billion changing hands. Brokerage 2TradeAsia said the composite index was likely to stay above the 3,000 psychological mark this week as more companies report better earnings for last year and with sufficient money supply in the regional financial system. "With comparative yields deemed unappealing, fund managers’ zest to search for better returns will continue," it said, putting immediate support at 3,000-3,020 points and resistance at 3,150-3,170. Other Asian stocks slid on Monday after mixed economic reports about the US economy inspired caution among investors. Major bourses were down by as much as 1 percent after a lackluster session on Friday. Investors found few reasons to buy stocks after US economic data released on Friday painted an uneven picture of recovery in the world's largest economy. While retail sales were better than expected last month, a weaker report on consumer sentiment disappointed traders. In Japan, the Nikkei 225 stock average lost 0.2 percent or 19.26 points to 10,732.00. Hong Kong's Hang Seng was down by 1 percent to 21,004.54 points, while South Korea's benchmark shed 1.1 percent to 1,644.47. Shanghai’s stock market fell by 1.2 percent, Australian stocks lost 0.6 percent and Taiwan shares dropped by 1 percent. Last Friday, the Dow ended up by 0.1 percent or 12.85 points to 10,624.69, while the broader S&P 500 index slipped by 0.25 point or less than 0.1 percent to 1,149.99. The NASDAQ composite index also fell by 0.8 point or less than 0.1 percent to 2,367.66. It was still at an 18-month high. 2TradeAsia said institutional investors might look for directions on whether China would cap economic growth, which could prompt continued profit-taking. "Declines might be limited, however, [since] the move is [in] parallel to the [Federal Open Market Committee’s] upcoming meeting on US interest rates on Tuesday (US time)," the brokerage said. "With ample liquidity in the regional financial system, most will seize equities’ weakness to position or realign their portfolios. Trade selectively and optimize trading ranges," it added. Despite the slight gain on Monday, losers beat gainers 57 to 42, while 67 stocks were unchanged. Half of the six subindices advanced, led by holding firms’ 1.41-percent or 25.69-point rise to 1,844.73. Property stocks also went up by 0.32 percent or 3.39 points to 1,064.71, while industrial firms added 0.26 percent or 12.12 points to 4,728.17. On the other hand, mining and oil stocks tumbled by 1.73 percent or 162.69 points to 9,227.33, while the service index shed 0.59 percent or 8.79 points to 1,483.72. Financial stocks also shed 0.29 point or less than 0.1 percent to 648.23. The all-share index gained 0.24 percent or 4.56 points to 1,935.58. Aboitiz Equity Ventures, Inc., the day’s most traded stock, gained 75 centavos to P13.50, while unit Aboitiz Power Corp. was up by 75 centavos to P12.75. On the other hand, dominant carrier Philippine Long Distance Telephone Co. lost P20 to P2,540, while ABS-CBN Holdings Corp. was down by 50 centavos to P27. Ayala Corp. and Metropolitan Bank and Trust Co. were unchanged at P300 and P45.50, respectively. — Norman P. Aquino, GMANews.TV