Philippine shares ended off their highs on Tuesday, briefly touching the 6,900-psychological resistance, before falling back in late trade on valuation concerns.
The Philippine Stock Exchange index (PSEi) finished trade on Tuesday up 11.83 points or 0.17 percent at 6,882.73, while the wider all shares index was down 1.35 points or 0.03 percent to 4,110.62.
The main index had risen past the 6,900-mark at the noon break as investors tracked the gains in US equities, but the local barometer eventually fell back in the afternoon session with investors beginning to question current valuations.
Astro del Castillo, First Grade Finance Inc. managing director, said in a phone interview that the main index was finding it hard to break the 6,900-psychological mark with few incentives in sight.
“We were up in the morning but slowed down in the afternoon. The 6,900-level proves to be a solid resistance given that investors still kind of see the valuations as too high,” Del Castillo said.
“The market may consolidate in the next few days given the lack of market-moving news,” he added.
Asked how the market would likely react to the upcoming World Economic Forum (WEF) on East Asia to be held in Manila Thursday and Friday this week, Del Castillo only said: “Not that significant”.
“The WEF will mostly likely be just a venue for exchanging of ideas. There’s really not much important announcement being awaited from the forum,” he emphasized.
Except for services, which slid 0.88 points or 0.04 percent to 2,048.09, majority of the sectoral indices just barely managed to stay in the green.
Industrials gained 42.36 points or 0.41 percent to 10,433.43, while mining and oil added 27.49 points or 0.17 percent to 16,184.01. Financials inched up 2.15 points or 0.13 percent to 1,623.24, followed by property, which rose by a modest 3.06 points or 0.11 percent to 2,756.57. Holding firms were flat, up just 0.11 point to 6,222.57.
Trading volume further thinned to 1.5 billion shares, valued at P10.4 billion. Decliners beat advancers 100 to 77, with 39 issues unchanged.
Some of the most actively traded stocks were Metropolitan Bank and Trust Co., up 1.13 percent at P89.50; LT Group, Inc., down 4.18 percent at P14.68; Ayala Land, Inc., up 1.23 percent at P32.90; and BDO Unibank, Inc., up 0.06 percent at P88.70.
Coal Asia Holdings, Inc. outperformed the market, surging 35.59 percent to P1.60 per share.
Coal Asia subsidiary Titan Mining and Energy Corp. on Monday secured an environmental compliance certificate for its 7,000-hectare coal mine in Manay, Davao Oriental.
“TMEC can now proceed with its commercial coal production. TMEC expects to make its initial shipment of coal in the third quarter of this year,” Coal Asia told the local bourse.
Philippine shares ended higher on Monday, bucking the trend in regional markets, as investors hunted for bargains among select blue chips. The PSEi climbed 53.19 points or 0.78 percent to 6,870.90, while the wider all shares index was up 25.89 points or 0.63 percent at 4,111.97 points.