Philippine shares were down for the second straight day as market participants continued to cash in their gains, taking their cue from Wall Street’s fall overnight following weak US housing and earnings data.
“Asia continues to take its cue from the US, which last night snapped its longest winning streak in six months as the first set of disappointing earnings and home prices fell,” Accord Capital Equities Corp. analyst Justino Calaycay said.
Angping and Securities, Inc. analyst Elizabeth Abadillo said the second day of correction was driven by continued profit-taking.
“Corporate results in the region also become a factor that investors have to contend with as the reporting season begins,” he added.
On Thursday, the Philippine Stock Exchange index slipped 38.19 points or 0.56 percent to 6,731.33, while the wider all shares index dropped 17.34 points or 0.43 percent to close at 4,054.87.
”The market needs to take a breather, so it’s a healthy correction,” Abadillo added.
Except for mining and oil, which rose by 106.13 points or 0.68 percent to 15,806.46, all the other sectoral indices posted minor declines. Services lost 19.72 points or 0.98 percent to 1,987.13, while financials shed 15.08 points or 0.94 percent to 1,597.26.
The property counter was down 8.57 points or 0.32 percent to 2,652.91, while holding firms fell 18.92 points or 0.30 percent to 6,184.95. Industrials retreated 13.84 points or 0.14 percent to 10,108.38.
Trading volume was thinner at 2.2 billion shares valued at P6.8 billion. This time, losers beat gainers 94 to 86, with 39 issues unchanged.
Some of the most actively traded stocks were Philippine Long Distance Telephone Co., which was down by 1.95 percent at P2,820; Manila Electric Co., down 2.41 percent at P275; Jollibee Foods Corp., down 1.59 percent at P173.20; Aboitiz Power Corp., down 2.14 percent at P36.60; Bank of the Philippine Islands, down 1.99 percent at P93.50; and Globe Telecom, Inc., down 1.38 percent at P1,639.00.
On Wednesday, Philippine shares snapped a four-day winning streak as investors opted to take profit and stay on the sidelines while awaiting fresh leads from overseas. The main index shed 15.43 points or 0.23 percent to 6,769.52, while the wider all shares lost 2.70 points or 0.07 percent to 4,072.21.
Overall, the market is poised to end lower this week as investors continue to pocket gains on a lack of buying incentives.