The local stock market extended its correction for the second straight day Wednesday, as US stocks showed more volatility, influencing investors to sell rather than buy more shares for re-positioning.
The Philippine Stock Exchange index (PSEi) ended in the red with a 44.73-point drop, losing 0.64 percent to close at 6,903.79 The wider all shares index shed 19.49 points, or 0.47 percent to end at 4,138.72.
“After giving up part of the gains as investors groped for leads, the market’s attention is invariably caught up in the movements of stocks overseas, the US mostly,” Justino Calaycay, Accord Capital Equities Corp. analyst, said.
“With the Dow showing nearly three-digit losses approaching mid-session Tuesday night, the prospect of a rebound in mid-week loses steam,” he added.
Except for the industrials sectoral index, which was up by 10.46 points, or 0.10 percent to 10,468.31, the rest of the sectors ended the day in negative territory. Holding firms were down by 73.21 points, or 1.16 percent to 6,228.99, followed by the property counter, which fell by 12.20 points, or 0.46 percent to close at 2,639.29. Services erased 9.36 points, or 0.45 percent to 2,074.24, while financials were lower by 5.41 points, or 0.32 percent to 1,665.93.
Valued lower at P5.5 billion, the number of shares traded on Wednesday was at 1.8 billion. Decliners outnumbered advancers anew, 98 to 87, while 44 issues were unchanged.
Some of the most actively traded stocks on Wednesday included Philippine Long Distance Telephone Co., down 0.33 percent to P2,992.00; First Gen Corp., down 3.90 percent to P20.95; BDO Unibank Inc., down 1.02 percent to P91.90; and Alliance Global Group Inc., down 0.17 percent to P29.70.
For the top gainer, Pancake House, Inc. saw the price of its shares surging by 50 percent to P60.75.
Responding to an inquiry from the stock exchange, Pancake House compliance officer and corporation information officer Rebecca Arago indicated that the company’s plan to absorb some of the companies that form part of the Max’s Group of Companies may have been responsible for the remarkable gain.
“Apart from the information covered by the disclosures accessible on the EDGE platform, the company is not aware of any undisclosed information that could have triggered the price movements mentioned in your letter,” Arago informed the exchange. EDGE is the online trading platform of the PSE.
Earlier, investors decided to cash in their gains during the second stock market trade for the week, a development that made the index stay within the 6,900-level.
The PSEi ended at 6,948.52 on Tuesday, lower by 50.58 points, or 0.72 percent, while the wider all shares erased 22.11 points, or 0.53 percent to 4,158.21.