Philippine shares dropped on Tuesday as the market benchmark hit resistance at 6,800 points.
“Today, we saw the Philippine market react again to the overhang of expensive valuations and recent developments in our local economy…. What’s positive about the consolidation is that it sees continual support when it nears the 6,750 support, indicating a good chunk of investors believe that prices at these levels are of fair value. Beyond that, the market is waiting for more concrete catalysts to adjust valuations,” DA Market Securities Inc. equity analyst Gab Aguila said.
The Philippine Stock Exchange index (PSEi) ended Tuesday’s trade down 24.75 points or 0.36 percent at 6,777.98, while the wider all shares slipped 17.70 points or 0.43 percent to 4,070.62.
“We continue to expect the market to trade range-bound and advise investors to stay alert when the market nears resistance levels,” Aguila added.
Mining-and-oil was down 135.82 points or 0.87 percent at 15, 503.66, holding firms slipped 27.13 or 0.44 percent to 6,188.22. Property was lower by 23.92 points or 0.90 percent at 2, 623.58, while industrials eased 19.07 points or 0.18 percent to 10, 376.89. Services dipped by 11.92 points or 0.58 percent to 2,031.14 and financials by 3.76 points or 0.24 percent to 1, 591.11.
Trading volume thinned to 1.7 billion shares valued at P8.17 billion.
Advancers outnumbered decliners 98 to 69, while 43 issues were unchanged.