Philippine shares eased further from recent record levels that analysts said have made the stocks “expensive,” while investors found no fresh catalysts to push the market forward.
The Philippine Stock Exchange index (PSEi) shed 0.18 percent or 13.91 points to close at 7,833.03. The broader All Shares index dropped 0.16 percent or 7.09 points to 4,478.03.
Lawrence Lee, vice president of Citisecurities Inc., saw “a lot of weakness across the board from foreign selling.”
“There might be more coming in the next few days. [There is an] exodus of funds to China and other markets like India and South Korea… because we’re expensive, and we have no new stimulus. The other countries have greater EPS [earnings per share]growth but much cheaper or they have stimulus,” Lee added.
By sector, holding firms and mining and oil gained, while the four other sectors— finance, industrial, property and services—all declined.
“Historically, the market is usually down in the second quarter due to the tax month, the waiting game for the six-month corporate earnings [results], and the vacation season. So the market is very dry right now. Also, with the arbitration issue involving Manila Water, investors were quite concerned about that,” Harry Liu, Summit Securities Inc. president, Liu.
The International Chamber of Commerce has upheld the position of regulator Metropolitan Waterworks and Sewerage System (MWSS) disallowing Manila Water to pass on its corporate income tax to customers.
Active stocks closed mixed: Aboitiz Power Corp. ended flat, while DMCI Holdings Inc., International Container Terminal Services Inc. and Megaworld Corp. rose. Top losers included BDO Unibank Inc., Ayala Land Inc., SM Prime Holdings Inc., Universal Robina Corp., SM Investments Corp. and Philippine Long Distance Telephone Company.
Total volume dropped to 878.08 million shares, valued at P5.82 billion. Decliners outnumbered advancers 108 to 75, while 41 issues closed unchanged.
Liu said for the medium term, the market is projected to go into a consolidation period to gather new momentum for a climb toward the yearend.
On Tuesday, the bellwether PSEi dropped 0.39 percent or 30.39 points to 7,834.88, while the All Shares fell 0.32 percent or 14.15 points to 4,480.02.