Index slips as investors pocket profits from rally
By Denise A. Valdez, Senior Reporter
THE MAIN INDEX posted losses on Wednesday but remained above the 7,000 mark as some investors resorted to profit taking after Tuesday’s rally.
The 30-member Philippine Stock Exchange index (PSEi) dropped 11.22 points or 0.15% to close at 7,024.26, while the wider all shares index picked up 6.33 points or 0.15% to end at 4,102.80.
“The PSEi ended slightly lower today (Wednesday) but mainly flat as selling picked up on issues that saw an incredible rally the day before,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.
The index opened weaker at 6,968.93 and spent the early hours of trading in red territory, hitting a low of 6,944.11 before picking up in the last hour. It reached a high of 7,079.18 before settling a little lower at the session’s close.
“This is what we expected due to the ‘too far, too fast’ rally in several large-cap issues. Other blue chips like Bank of the Philippine Islands (+4.14%), Metropolitan Bank & Trust Co. (+4.29%) and Megaworld Corp. (+5.22%), which have not climbed as much as the others, ended with substantial gains today,” Mr. Mangun said.
On Wednesday, some index heavyweights such as SM Investments Corp. (-4.64%) and JG Summit Holdings, Inc. (-2.70%) were taken over by selling pressure, which pulled the PSEi lower, Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said.
“Nonetheless, optimistic signs were seen conveying that bullish investors are still getting into the market. First, our advancers edged decliners 139 to 70 giving us a positive market breadth. At the same time, foreigners were net buyers with net inflows this Wednesday, amounting to P2 billion,” Mr. Tantiangco said in a text message.
Net foreign buying was at P1.99 billion, lower than the previous session’s P2.28 billion.
“We continue to see high trading volumes as there is a lot of interest from investors due to the improving sentiment. The main index was able to end above the 7,000 key level and may establish strong support at this level,” AAA Southeast Equities’ Mr. Mangun added.
Most sectoral indices ended Wednesday’s session higher. Financials grew 21.91 points or 1.65% to 1,348.05; mining and oil rose 105.52 points or 1.29% to 8,280.71; industrials added 109.05 points or 1.20% to 9,194.64; and property climbed 20.62 points or 0.59% to 3,477.66.
On the other hand, holding firms declined 121.67 points or 1.63% to 7,324.56, and services shed 1.93 points or 0.12% to 1,542.32 at the end of trading.
Some 2.24 billion issues valued at P27.77 billion switched hands on Wednesday, slightly lower than the previous day’s 2.44 billion issues worth P13.08 billion.
Gainers outnumbered losers, 139 to 70, while 49 names closed unchanged.
