SHARES SLUMPED on Wednesday as the local market paused for a break after rallying past the 7,800 level in previous days.
The benchmark Philippine Stock Exchange index (PSEi) went down 0.17% or 13.65 points to close at 7,830.96, in sync with most markets that ended flat in Wednesday’s session. The broader all-shares index also dropped 0.17% or 8.27 points to 4,750.86.
“It was more of a consolidation with a downward bias after market was up substantially for the past two days,” Diversified Securities, Inc. trader Aniceto K. Pangan said via text on Wednesday.
Mr. Pangan said Wednesday’s performance was also a reaction to hints of another rate hike by the United States Federal Reserve. The Fed has so far raised benchmark interest rates twice this year.
“With the US Fed’s intent to increase rates this September, investors went on profit taking thus was downed thru most of the trading session [Wednesday, August 29],” Mr. Pangan explained.
Regina Capital Development Corp. Managing Director Luis A. Limlingan attributed the decline to slower performances of international markets.
“Philippine markets took a bit of a breather due to muted US equity gains, with indexes closing off of intraday peaks,” Mr. Limlingan said in a separate message.
Wall Street indices ended the day flat, with the Dow Jones Industrial Average eking out gains of 0.06% or 14.38 points to 26,064.02. The S&P 500 index rose 0.03% or 0.78 point to 2,897.52, while the Nasdaq Composite index climbed 0.15% or 12.14 points to 8,030.04.
Most Asian indices also traded flat on Wednesday after jumping to record levels in the previous trading sessions.
Back home, the property sector was the lone sub-index that managed to post gains, adding 0.62% or 24.41 points to 3,959.42.
Mining and oil shed 0.95% or 95.66 points to 9,922.74, while financials slipped 0.82% or 14.98 points to 1,812.19. Industrials dropped 0.61% or 70.04 points to 11,263.30; services declined 0.42% or 6.55 points to 1,539.60; while holding firms lost 0.04% or 3.38 points to 7,674.01.
The market saw some 3.04 billion issues switch hands, resulting in a turnover of P6.21 billion, lower than Tuesday’s P7.65 billion.
Decliners trumped advancers, 112 to 81, while 51 stocks remained unchanged.
Foreign investors continued their buying spree, although net purchases slimmed to P91.21 million versus the P474.4-million net inflow posted in the previous session.
Fifteen of the 20 most actively traded stocks for the day ended in the red, with Aboitiz Equity Ventures, Inc. posting the largest loss at 2.78% to P52.50 each. Bloomberry Resorts Corp., Robinsons Retail Holdings, Inc., and GT Capital Holdings, Inc. also declined 1.21%, 1.25%, and 1.16%, respectively.
Metro Pacific Investments Corp. was the top gainer, as shares in the company jumped 3.16%, while San Miguel Corp. also gained 2.95%. — Arra B. Francia

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