THE local stock market remained in the red for the third straight trading day on Tuesday on extended profit-taking ahead of the release of first-quarter gross domestic product (GDP) data later this week.
Weakness in other Asian markets and investor caution ahead of the GDP release also weighed on the local bourse.
“The market ended in the red on continued profit-taking as investors opted to stay on the sidelines in anticipation of the GDP data,” Joyce Ramos, equity analyst at AB Capital Securities Inc., said over the phone.
First-quarter GDP data are expected to be released on Thursday. The government has set a 6 percent GDP growth target for the first quarter.
“Disappointing GDP data can pull the index lower to the 6,700-support level, while positive GDP data can help the index try to reach the 6,900-resistance level,” Ramos further said.
On Tuesday, the Philippine Stock Exchange index retreated 10.16 points or 0.15 percent to 6,780.26, while the broader all shares shed 3.23 points or 0.08 percent to 4,050.28.
Sectoral indices were mixed. Industrials lost 28.82 points or 0.28 percent to 10,305.28 and holding firms fell 10.28 points or 0.17 percent to 6,132.32. Property also slipped 2.52 points or 0.09 percent to 2,690.15.
But mining and oil rebounded, gaining 77.46 points or 0.50 percent to 15,709.10.
Financials inched up 1.40 points or 0.09 percent to 1,596.57 while the services sector was flat, adding just 0.52 point or 0.03 percent to 2,039.70.
Total volume of shares traded on Tuesday stood at 1.2 billion, valued at P5.4 billion. Decliners outpaced advancers 96 to 72, while 46 stocks were unchanged.
Some of the most actively traded stocks were Megaworld Corp., up 0.66 percent at P4.60; Philippine Long Distance Telephone Co., down 0.21 percent at P2,894.00; Emperador Inc., up 3.14 percent at P11.84; and Ayala Land Inc., down 0.31 percent at P32.05.
Ramos expects the market to continue to move sideways today, Wednesday, in the absence of fresh leads.
Local shares succumbed to profit-taking pressure on Monday as investors repositioned ahead of the GDP data release. The PSEi lost 20.91 points or 0.31 percent to 6,790.42, while the broader all shares dropped 10.12 points or 0.25 percent to 4,053.51.