Philippine shares tracked losses on overseas markets on Wednesday, looking vulnerable in the absence of positive news to sustain investor interest.
Nisha Alicer, chief equity strategist at DA Market Securities Inc., said the widespread correction on the global markets sent shockwaves to the local bourse, “coinciding with the local market’s susceptibility to correction.”
While European and US stocks were both trading lower, Asian shares tumbled to a one-month low on Wednesday as the heightened possibility of Ukraine slipping into civil war doused risk appetite, a Reuters report said.
On Wednesday, the Philippine Stock Exchange index (PSEi) fell for a second straight day, ending lower by 17.42 points or 0.26 percent at 6,748.51, while the wider all shares retreated by 11.07 points or 0.27 percent to 4,065.23.
“The market continues to experience resistance selling near the 6,829 level,” Alicer said in a text message.
“The general market may experience consolidation/correction, with supports at 6,675/6,550/6,482,” she added.
Most of the sectors were down but mining and oil and industrials bucked the trend. Mining and oil issues rose by 409.07 points or 2.52 percent to 16,622.34, while industrial firms went up by 16.70 points or 0.17 percent to 10,126.36.
Meanwhile, property lost 14.81 points or 0.55 percent to 2,657.57, followed by holding firms, which retreated by 28.54 points or 0.46 percent to 6,119.57. Services shed 4.14 points or 0.20 percent to 2,054.99, while financials lost 1.10 points or 0.07 percent to 1,603.86.
The volume of shares traded grew to 2.7 billion shares valued at P7.1 billion. Advancers outnumbered decliners anew, 95 to 87, while 37 issues were unchanged.
Some of the most actively traded shares on Wednesday were Manila Water Co. Inc., down 2.22 percent at P26.40; Alliance Global Group Inc., which retreated 1.48 percent to P30; Philippine Long Distance Telephone Co., unchanged at P2,892; and SM Investments Corp., up slightly by 0.07 percent at P742.50.
According to Alicer, the local market is ripe with rotational activity in favor of commodities stocks likenickel, copper, and gold-related issues.
“However, we do see bright spots in blue chips and second-liners with stellar first-quarter earnings and continue to show good upside to target,” she added.
On Monday, Philippine shares fell after several days of gains but managed to keep the losses to less than a percent throughout the whole session.The PSEi ended little changed, down 0.01 percent to end at 6,765.93, while the wider all shares finished higher, adding 4.67 points or 0.11 percent to 4,076.30.