• Philippine shares dip anew on Fed issues

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    Another trading week ended with a dip over overseas jitters, which also caused other major markets around the world to slump.

    The Philippine Stock Exchange index (PSEi) ended Friday by shedding 0.83 percent, or 54.76 points to 6,525.95, while the wider all-shares barometer went down by 0.60 percent, or 24.14 points to 3,974.93.

    An analyst cited that the market was down over fears that the US Federal Reserve will start reducing its bond buyback program.

    “Fears of taper in the US as early as September caused the local shares to head lower,” Jonathan Ravelas, BDO Unibank chief market strategist, said in a text message.

    Except for mining and oil, majority of the sub-indices plummeted toward the last trading session for the week. Holding firms registered the largest decline, falling by 1.47 percent, or 86.44 points to 5,779.59, followed by property, which snapped by 0.73 percent, or 19.15 points to 2,596.37.

    Industrial, on the other hand, posted a 0.48-percent drop, or 47.27 points to 9,823.61, while financials and services both slid by 0.36 percent.
    Total value turnover turned even thinner at P5.57 billion with losers edging gainers, 92 to 52.

    Some of the most actively traded stocks on Friday were Metropolitan Bank and Trust Co., SM Investments Corp. (SMIC), Suntrust Home Developers Inc., Alliance Global Group Inc., Ayala Land Inc., Ayala Corp., Manila Electric Co., SM Prime Holdings Inc. and Universal Robina Corp.

    From a more than 7-percent decline on Thursday, the decrease in SMIC’s shares reached 1.18 percent on Friday. On Thursday, the market abruptly went out of its three-day winning momentum after investors opted to take their profits.

    Elizabeth Abadillo, analyst in Angping and Associates Securities Inc., said that profit-taking “dragged the market down,” taking note of the hefty fall recorded in the share price of SMIC amid indication of lesser support and confidence coming from the MSCI Index to the Henry Sy-led conglomerate. The share price of SMIC slumped 7.73 percent on Thursday to P805.50.

    MSCI is an international provider of investment decision support tools.

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