Philippine shares fell a bit on Thursday on the same external issues, with local developments also making an influence on price movements.
Jovis Vistan, head of research of AB Capital Securities Inc., said in a phone interview that the market was barely down on concerns on external issues, particularly geopolitical issues with Syria still hanging on the edge as well as the nearing US Federal Reserve tapering talks.
According to him, the tensions from Syria keeps putting pressure on commodity prices.
“With one eye trained on the unfolding and ongoing debates in the US Congress on a proposed limited action against Syria, the other on the US Federal Reserve meeting 11 days away, and ears turned to the first Blue Ribbon Committee hearing on the pork barrel scam, all other influences may have been blocked out of domestic investors’ senses with the finger pressed on the sell button,” Jun Calaycay, Accord Capital Equities Corp. analyst, said.
For the next trading session, Vistan said that the bias is for the market to go down.
“There are too many headwinds,” Vistan said, also taking note of the local political issues as another factor upsetting the market.
The Philippine Stock Exchange index (PSEi) went down anew, albeit slightly, losing 0.15 percent, or 9.11 points to end at 5,959.22. The wider all-shares barometer also went down 0.20 percent, or 7.33 points to 3,656.47.
“Returning from the noon recess, a growing realization that the sell-off may have gone a little overboard brought on an intraday shift, sustaining the midmorning’s rebound off the day’s low,” Calaycay said.
“It wasn’t enough, however, to pull the PSEi to positive territory at the close. The measure is poised to post its third straight weekly loss,” he further said.
Majority of the sub-indices were still dripping in red with mining and oil and property plummeting by more than 1 percent. Financials, holding firms and industrial all ended negatively flat.
Services, on the other hand, managed to register slight gains, going up a bit by 0.38 percent, or 7.13 points to 1,901.39.
Total value turnover stood a little higher at P7.1 billion. Bears still outpaced bulls, 90 to 56.
Some of the most actively traded stocks were SM Investments Corp., Philippine Long Distance Telephone Co., Ayala Corp., Manila Electric Co., Ayala Land Inc., BDO Unibank Inc., Metropolitan Bank and Trust Co., Metro Pacific Investments Corp., SM Prime Holdings Inc. and Alliance Global Group Inc.
On Wednesday, the same global factors, including the Syrian tensions and Fed tapering talks, again affected the local stock market, sending back the Philippine shares below the 6,000-point level.