The local stock market closed out a positive week with a retreat as investors opted to take profit after five consecutive days of gains.
“The market is really ripe for a correction. The regional benchmark is just being followed by the local market because they are also on the red side. Overseas correction signaled investors to take profits,” Astro del Castillo, First Grade Finance Inc. managing director, said in a phone interview.
The Philippine Stock Exchange index (PSEi) stayed above the 6,800 level, but lost 50.03
points, or 0.73 percent to close at 6,842.15, while the wider all shares fell by 22.59 points, or 0.55 percent to end the week at 4,103.79.
Except services, which gained 1.28 points, or 0.06 percent to finish the session at 2,039.77, all the sectoral indices were in the red as well.
Property had the largest decline, retreating by 41.60 points, or 1.56 percent to 2,628.23, followed by industrials, which fell 78.66 points, or 0.75 percent to 10,384.26. Holding firms went down by 41.66 points, or 0.66 percent to 6,230.71, and financials decreased by 7.15 points, or 0.44 percent to 1,632.71. Mining and oil shares erased 28.29 points, or 0.17 percent to end the week at 16,391.54.
Market participation was also significantly lower than on Thursday, with 1.9 billion shares worth P6.9 billion changing hands. Advancers were beaten by decliners, 75 to 100, while 54 issues were unchanged.
Some of the most actively traded stocks on Friday were Philippine Long Distance
Telephone Co., up 0.07 percent to P2,960; Ayala Land Inc., down 1.75 percent to P30.85, SM Prime Holdings Inc., down 2.93 percent to P15.92, and SM Investments Corp., down 2.46 percent to P811.50.
“SM shares has already been going up in the last few days, it is not surprising for it to correct to that level,” del Castillo said.
On Thursday, Philippine shares extended their winning streak to a fifth day, even nearing the 6,900 level after overseas markets recovered a bit from an extensive correction.
Accord Capital Equities Corp. analyst Justino Calaycay indicated that the local market went up after US stocks rose despite news of the US economy slowing much more than had been anticipated in the first quarter.
The PSEi closed Thursday up 57.50 points, or 0.84 percent to 6,892.18, while the wider all shares gained 29.86 points, or 0.73 percent to 4,126.38.