PH shares retreat after four-day run


Unlike other markets that rose because of the decision of the US Federal Reserve to taper by $10 billion its monthly bond-buying program, the Philippine bourse closed on the red side on Thursday, wiping out the gains it had during the early hours of the session.

“Share prices snapped a four-session run, despite an early surge of positive sentiment after the Federal Reserve revealed it is reducing its monthly bond purchases by $10 billion beginning January,” Jun Calaycay, Accord Capital Equities Corp. analyst, said.

The US Federal Reserve said that it plans to taper its monetary policy of quantitative easing in January, specifying that it would trim purchases of government-backed bonds by $10 billion to $75 billion a month starting January next year.

The Philippine Stock Exchange index (PSEi) wiped out its gains during the early hours of Thursday trade, falling by 0.64 percent, or 38.43 points to 5,923.12, while the wider all-shares index erased 2.98 points, or 0.08 percent to 3,634.08.

“Some corners of the market continue to see the Fed action in bad light—insisting that it will draw liquidity out of emerging markets and into their more advanced counterparts. To some degree, this analysis is correct. The flows may indeed to begin to reverse the direction it has generally taken over the last four years or so,” Calaycay said.

Overseas, shares in Europe and Asia spiked after the US Federal Reserve committed to keep interest rates low to lessen the impact of its decision to scale back the stimulus program.

From a positive end during the past few sessions, majority of the local sub-indices also glided onto the red side. Holding firms closed 0.97-percent lower, or 53.81 points to 5,483.17, followed by the financials, which went down by 0.90 percent, or 12.97 points to 1,430.09.

Services also registered a decline, snapping by 0.27 percent or 5.10 points to 1,862.92, while the property counter slipped 0.19 percent, or 4.20 points to 2,217.03.

Mining and oil, on the other hand, increased by 0.63 percent, or 72.99 points to 11,720.33, while industrial managed to post a 0.41-percent gain, or 35.39 points to 8,713.90.

Total value turnover stood at P6.7 billion. Gainers, however, continued to lead losers, 87 to 66 with 36 issues remaining unchanged.

Some of the top losers on Thursday were Alliance Global Group Inc., Ayala Land Inc., Ayala Corp., Bank of the Philippine Islands, BDO Unibank Inc., Jollibee Foods Corp., GT Capital Holdings Inc. and International Container Terminal Services Inc.

On Wednesday, the PSEi went for the fourth straight day, rising by 0.55 percent, or 32.56 points to end at 5,961.55.


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