Market index drops to 6,200 points

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The Philippine Stock Exchange index (PSEi) went down to the 6,200-point mark at the start of the week, but analysts said that the market is still not in bear territory.

Summit Securities President Harry Liu said in a text message that the market made another decline because it is “soft,” having been affected by the recent destruction brought by Super Typhoon Yolanda.

“The market is soft due to the recent devastation in the south [Visayas] because of Super Typhoon Yolanda and the disappointments on IPOs [initial public offering],” Liu said, citing the excitement from the Robinsons Retail Holdings Inc. (RRHI) and Resorts World Manila operator Travellers International Hotel Group Inc. IPO last week. The share prices of RRHI and Travellers went down at the end of Monday’s trading session.

Liu said that the Philippine stocks index will still remain in consolidation, or in a sideways movement between 6,250 points and 6,550 points.


“But I see that December will improve better than November’s [performance],” he added.

Meanwhile, Chief Technical Analyst Juanis Barredo of COL Financial told The Manila Times that the market drop was from of “corrections carried in parts of Asia.” Other factors, he said, were the revived United States Federal Reserve “tapering expectations” as well as the stronger dollar, which is consequently “hurting Asian currencies like [Philippine] peso at P43.59.”

“Such devaluation concerns pushed investors to be defensive—hence the ongoing corrective consolidation . . . [Market] is in a large consolidation range and needs more time to wind,” Barredo said, adding that the market would dwell at between 6,190 points and 6,100 points at the minimum.

The PSEi on Monday fell by 1.42 percent, or 89.95 points to 6,265.23, while the all-shares index went plummeted by 1.33 percent, or 51.72 points to 3,825.18.

All of the other sectors also went down, with industrial incurring a loss of 213.71 points, or 2.32 percent to 8,990.13, while mining and oil erased 227.43 points, or 1.84 percent to 12,105.28.

Financials dropped by 0.42 percent, or 6.44 points to 1,537.84, and property slumped by 1.51 percent, or 38.83 points to 2,528.62.

Also, services index subtracted 29.94 points, or 1.52 percent to 1,935.02, while holding firms counter lost 64.79 points, or 1.13 percent to 5,681.44.

Almost half of the most actively traded issues gained on Monday.

Decliners beat advancers, 107 to 34, while the number of unchanged shares ended at 43. Total volume was recorded at 653 million shares while value turnover amounted to P9.5 billion.

On Friday, the PSEi slashed 81.31 points, or 1.26 percent to 6,355.18, while the broader all-shares index subtracted 41.09 points, or 1.05 percent to 3,876.90.

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