Market dips on pre-holiday positioning

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The country’s stock market ended slightly weaker on Tuesday as a mild correction set in following a month of consistent robust performance, analysts.

The benchmark Philippine Stock Exchange Index (PSEi) closed lower by 0.47 percent or 34.38 points to end the trading day at 7,342.03, while the wider All Shares declined by 0.41 percent or 17.15 points, to close at 4,208.61.

Joseph Roxas, president of Eagle Equities Inc. in a phone interview said that the local bourse has gone through a “correction,” whic h had been anticipated by the market following its very strong performance in the past weeks.

“The slight drop in the PSEi today [Tuesday] was actually expected. It’s just a correction
after it had been performing very strongly for a while,” Roxas said.


In addition to the stock market’s correction, which means that the bourse is “resting” following its recent extended rally, he noted that the last days before the Lenten break give investors time to close out their respective positions, with many choosing to collect their gains accumulated during the month.

“I even expect the market to dip further tomorrow. But you know investors are forward looking, should it go down further, investors would again swarm the market and purchase shares,” Roxas said.

Total value turn over Tuesday was still strong at P7.325 billion. Losers outnumbered winners, 113 to 79, while 32 issues remained unchanged.

All the sub-indices ended negative, except for the financial sector, which notched up a modest gain of 0.29 percent.

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