SHARE PRICES fell on Tuesday, with the market tracking regional sell-offs as investors were spooked by weak Chinese trade data.
The Philippine Stock Exchange index (PSEi) lost 136.85 points or 1.91 percent to close at 7,013.44 while the All Shares index fell by 64.10 points or 1.57 percent to 4,030.03.
Jonathan Ravelas, BDO chief market strategist, said “weak data out of China caused regional markets to sell off,” including the Philippines.
“The recent decline highlights the market’s inability to sustain the rally — investors seem to be quick to take profits — above 7,100 levels,” he added.
China on Tuesday released trade data for September, reporting an imports decline of 20 percent and a 3.7 percent contraction in exports.
Ravelas said the market in the next few days would likely “try 6,970 to 7,000 levels. Failure for market to sustain itself above said levels could call for further weakness towards the 6,800 levels.”
Alexander Adrian Tiu, equity analyst at AB Capital Securities Inc., said Philippine stocks also hit by extensive profit-taking, correcting a positive run in the past two weeks from 6,900 to above 7,100.
“Basically profit taking and weaker Chinese economy [were behind Tuesday’s fall]. We see support at 7,000, and further at 6,850,” Tiu said.
Jason Bibit, analyst at Regina Capital Development Corp., said: “The PSEi’s 50-day moving average proved to be a profit-taking point for investors, plus China’s merchandise trade data generally weighed on markets.”
“While Chinese exports were not as bad as consensus estimates (actual 3.7 percent versus 6 percent estimated declines), imports were worse than expected (actual 20 percent versus estimated 16 percent),” Bibit said.
“Prices could test support at 6,800 soon, depending on future economic data, most notably China’s third quarter and September industrial production due on Monday next week,” he added.
All six sub-indices declined on Tuesday, led by property and financials that fell by 2.03 percent and 1.92 percent, respectively.
Total traded shares amounted to 2.273 billion, valued at P7.293 billion. Decliners outnumbered advancers, 109 versus 66, while 43 issues were unchanged.