Consecutive market drop caused by fall of Manila Water shares and Fed concerns


The Philippine Stock Exchange index (PSEi) slumped on Friday as local water company shares fall and concerns over the US Federal Reserve tapering take over.

Astro del Castillo, First Grade Finance technical analyst, told The Manila Times the drop on Tuesday’s trading was because of the massive losing of the Manila Water Corp (MWC) stocks.

The company went down double digits by 14.52 percent at the end of the trading session at P26.50 at the end of the trading session.

Del Castillo, as well as Summit Securities Inc. President Harry Liu, said that the market was affected by the Fed tapering of its stimulus for the Fed’s upcoming meet next week.

Liu also said that the “short resistance was down to 6,195-point and medium resistance is at 6,450.” Though short term is shaky, he said that the long term will remain to go up towards the end of the year.

“Market on the local level is watching [the turnout of]the Zamboanga and Napoles situation. On the global factors, market is seen okay on stable [situation]on Syria and the movement on the stimulus on the Fed,” Liu said.

The PSEi was down by 1.01 percent or 62.37 points to 6,133.24, following yesterday’s 0.31 percent drop. Wider all shares also decreased by 0.78 percent or 29.51 points to 3,738.27.

Only Financials moved up among the sectoral indices with a mere 0.32 percent growth or 4.76 points to 1,478.86. While other indices like industrial slumped by 1.98 percent or 187.81 points to 9,286.30.

Holding firms erased 61.27 points or 1.11 percent to 5,436.98 and services subtracted 17.20 points or 0.87 percent to 1,956.08.

Mining and oil went down by 2.72 percent or 357.92 points to 12,776.81 while property skid by 0.71 percent or 16.73 points to 2,326.41.

Other than Manila Water that lost 14 percent, the most active companies ended with both losers and gainers. Among the losers were SM Investments Corp., Metro Pacific Investments Corp., Philippine Long Distance Telephone Company and Ayala Land Inc.

Most active gainers include Metropolitan Bank and Trust Company, Security Bank Corp., Jollibee Foods Corp., Manila Electric Company and Bank of the Philippine Islands.

Declines outnumbered advances with 98 to 44, while the unchanged shares were registered at 47. Value turnover was at P6.9 billion and total volume accounted to 930 million shares.

On Thursday, the Philippine benchmark stocks dipped slightly by 0.31 percent or 19.29 points to 6,195.61. Broader all shares index was also up by 0.18 percent or 6.61 points to 3,799.19. KRISTYN NIKA M. LAZO


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