Market snaps from six-day uptrend

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After six days on the green side, Philippine shares shied away from positive territory as the US debt ceiling deadline drew nearer.

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Astro del Castillo, First Grade Finance managing director, said that investors are starting to feel cautious again about the US debt ceiling issue, and this clearly affected share prices.

“Naging realization na ulit na we are already nearer the deadline of the debt ceiling [the realization among investors that we are already near the deadline of the debt ceiling is back]. Everyone is feeling the pessimism with the continued lockdown,” del Castillo further said.

The Philippine Stock Exchange index ended Wednesday trade in the red, snapping out of its six-day upward trend by 1.19 percent, or 77.11 points to 6,377.75, while the wider all-shares index shed 0.80 percent, or 30.97 points to 3,857.37.

Eduardo Francisco, president of BDO Capital and Investments Inc., said that it’s fine for the market to go sideways.

“For me, even if it goes down 50 to100 points, especially if it’s up several days, that’s just minor volatility but there’s no major news or anything affecting us. The next thing we know, we will go up again,” he added.

All the sectoral indices dipped toward the end of the session, with services registering the largest loss, falling by 1.87 percent, or 38.11 points to 1,999.15, followed by holding firms, which went down by 1.54 percent, or 89.28 points to 5,720.92. The rest of the sectors fell by less than 1 percent.

Total value turnover was high at P17.6 billion given the sell-off. Decliners edged advancers, 97 versus 48, while 41 issues were unchanged.

Some of the top losers were Philippine Long Distance Telephone Co., Alliance Global Group Inc., SM Investments Corp., Puregold Price Club Inc., Metro Pacific Investments Corp., Ayala Land Inc., SM Prime Holdings Inc. and Bloomberry Resorts Corp.

On Tuesday, Philippine shares went up slightly despite existing worries over the US government shutdown. The PSEi went up by 0.18 percent, or 11.65 points to 6,454.86, while the broader all-shares barometer rose by 0.15 percent, or 5.82 points to 3,888.34.

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