Philippine stocks retreated in the wake of a 200-point drop in the Dow Jones average overnight, with additional technical pressure for a correction on the local market after recent highs weighing on trading.
Overnight, the Dow suffered a 264.26-points free fall, while the S&P 500 dropped 32.31 points and the Nasdaq lost 88.47 points.
The main Philippine Stock Exchange index (PSEi) slipped 0.45 percent or 32.91 points to 7,261.30, while the All Shares index shed 0.31 percent or 13.45 points to 4,301.45.
Rafael Supangco of Angping and Associates Securities Inc. and Summit Securities Inc. President Harry Liu both told The Manila Times via separate phone interviews that the market was down due to the “US markets’ retraction” and continuation of profit-taking that resulted in “more selloff” on Friday.
“It is primarily the US markets’ retraction and continuation of the market correction from the intraday all-time high record last Wednesday that contributed to more selloff today,” Supangco said.
“This is just profit-taking of investors as well as market consolidation, technically. We need to be attentive to the global markets because locally, we have a very good economic environment. For the local scene, there is a lack of market moving news as of the moment,” Liu said.
Asked whether the Philippine Long Distance Telephone Company (PLDT) announcement of free internet services to Smart, Sun, and Talk ‘n’ Text prepaid subscribers contributed to pulling down its share price, Liu said that it did not contribute much, and that the PLDT share dip was based on “profit taking from its past gains.”
The analysts both said the long-term market will be bullish and “may reach 7,400 by yearend,” while the medium-term continues to indicate a negative sideways movement.
“Medium-term is still in correction but around October to November and up to year-end, the market will position for the third quarter corporate earnings announcement,” Liu said.
Liu also said support is seen at 7,100 to 7,150 points, while the resistance level is at 7,400 points.
Only the property counter increased among the subindices, up 0.36 percent or 10.26 points at 2,852.44. The rest of sectoral indices declined: Financials slipped 0.49 percent or 8.39 points to 1,693.97; industrials subtracted 0.25 percent or 28.88 points to 11,401.46; holding firms dipped 0.24 percent or 15.20 points to 6,374.41; services slumped 1.09 percent or 23.89 points to 2,177.71; and mining and oil shed 0.26 percent or 46.24 points to 17,680.02.
Two firms — Ayala Land Inc. and Universal Robina Corp. posted slight gains among the most active shares, while the rest declined.
The active losers were Philippine Long Distance Telephone Company, Metropolitan Bank and Trust Company, Alliance Global Group Inc., BDO Unibank Inc., International Container Terminal Services Inc., Globe Telecom Inc., Megaworld Corp. and First Gen Corp. 4.34 billion total shares were traded, while value reached P9.197 billion. Decliners outnumbered advancers, 92 to 77, with 47 issues unchanged.
On Thursday, the PSEi ended lower at 7,294.21, after reaching an intraday all-time high at 7,413.62. Despite positive trade in the morning, the PSEi closed with a 0.83-percent or 61.08 point loss at 7,294.21 on Thursday, while the broader All Shares likewise decreased 0.59 percent or 25.72 points to 4,314.90.