The local stock market weakened as investors took profits before trading stops for Labor Day.
The main index dropped 69.15 points or 1.02 percent to close at 6,700.49 as the Property counter led the retreat across all sectors. Volume surged to 1.4 billion shares worth P20.13 billion due to a block sale of Bloomberry shares as the market saw 110 gainers against 87 decliners, and 51 unchanged.
Bloomberry disclosed that its subsidiary, Sureste Properties Inc. purchased 921.18 million BLOOM shares from Global Gaming Philippines LLC at P18.22 per share pursuant to their Settlement Agreement.
The resolution of this dispute marks the end of a legal battle between SPI, Bloomberry Resorts and Hotels Inc. (BRHI), and GGAM, which had persisted for 10 years. GGAM, a casino management firm, claimed that it had been unfairly removed by from managing Bloomberry's Solaire Resorts & Casino in 2013.
“Philippine shares fell as the index failed to continue its rally. Wall street saw stocks rise as the Fed is expected to meet today, weighing on the country's interest rate policy,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “Stocks in the U.S. are expected to snap its six-month winning streak as Tuesday marks the final trading day of the month. Stocks are scheduled to record its first losing month since October as rate cut bets decline on persistently high inflation and on a resilient economy.”
Philstocks Financial Research and Engagement Officer Mikhail Plopenio said that, “This Tuesday, the local market dropped as investors took profits after a 6-day rally. Investors booked gains ahead of the Federal Reserve’s meeting to avert risks regarding the Fed’s decision.”
He noted that, “The bourse struggled to have a clear direction early in the day before heavy selling occurred near the closing bell. This reflected the cautiousness of the investors throughout the session.”