The local market fell as a result of persistent overseas and local jitters, but showed signs of a possible rebound in closing just over 6,700 after staying at the 6,600-level for most of the Wednesday trade.
BPI Asset Management said the local equities market declined for a third consecutive day this week as geopolitical turmoil in Iraq and Ukraine and the continuing ascent of crude oil prices fed inflation concerns.
The correction, according to the company, also led to market speculation that the Bangko Sentral ng Pilipinas may hike interest rates during their Monetary Board meeting today [Thursday], implying adverse corporate revaluations that further drove the market down.
After plummeting to 6,600-support level, the Philippine Stock Exchange index (PSEi) cut down its losses towards the end of the trade and returned to the 6,700-level, finishing the day off by only 1.80 points, or 0.03 percent to 6,703.13.
“After three days of slump, investors headed into the market cautiously expecting – or at least hoping – for a technical rebound. Overnight advances in both Europe and the US should add fodder to this thought, translating it to action,” Accord Capital Equities, Corp. analyst Justino Calaycay said.
“Unfortunately, such was not the case when the opening bell pealed. The bears hardly gave the bulls any room, pulling lower by 16 points off the starting block and took on a southern heading since,” he added.
However, a late afternoon surge in buying activity occurred and according to Calaycay, this strong recovery at the close should augur well for a technical rebound.
The wider all shares index also stayed in the red with a 6.43-points drop, or 0.16 percent to end at 4,023.71.
It was also a mixed result for the sectoral indices after three of them managed to recover, while the others did not escape negative territory. Property counter fell by 17.79 points, or 0.69 percent to 2,579.36, while services erased 12.02 points, or 0.60 percent to close at 1,989.71. Industrial also fell by 6.79 points, or 0.07 percent to 10,291.06.
Holding firms, on the other hand, rose by 12.72 points, or 0.21 percent to 6,129.12, while financials added 1.09 points, or 0.07 percent to 1,579.69.
Mining and oil had the largest increase, gaining 121.35 points, or 0.80 percent to 15,377.69, after Philex Mining Corp. was able to report that the suspension on its Padcal Mine operations was lifted Wednesday by the Pollution Adjudication Board of the Department of Environment and Natural Resources.
Philex Mining shares rose 3.23 percent to P9.60, one of the bright spots on a day when decliners beat advancers, 125 to 53, while 43 issues were unchanged. Overall, a total of 1.73 billion shares worth P7.2 billion were traded during mid-week session.
Among issues with big declines were Apex Mining Co. Inc., down 11.18 percent to P3.02, Omico Corp., falling 11.11 percent to P0.40, Vivant Corp., down 8.33 percent to P11.00, and Anchor Land Holdings Inc., down 7.61 percent to P14.32.
On Tuesday, the PSEi lost 53.52 points, or 0.79 percent to 6,704.93, while the wider all shares was also down by 27.66 points, or 0.68 percent to 4,030.14.