The trend in the local stock market remained volatile as the benchmark index went down further on Wednesday because of extended profit-taking.
Eduardo Francisco, president of BDO Capital and Investment, said that the volatility within the market is just normal, and it was most probably down because of extended profit-taking, which started Tuesday, the day after the market surged past the 7,000-point mark.
“It’s the normal ‘up and down’ of the market. So it’s actually good that we have some volatility because we just can’t keep going up. It’s just minor fluctuations and long term and medium term will be very good for us,” he said.
Francisco added that in the remaining trading sessions this week, there would still be a chance that the market would recover because there are big listed firms that will release their corporate earnings for the first quarter of this year.
“Then generally, we will see the market reacting positively as well,” he said.
Meanwhile, Jun Calaycay, Accord Capital Equities Corp. analyst, previously said that as the global situation swings from optimism to pessimism and back, the local market is left to look for trading hints from the domestic front.
“However, with much of market and stock moving numbers not due out for at least two weeks moving forward, the present will continue to focus on individual corporate stories as well as a search for laggards,” he said.
The Philippine Stock Exchange index went down further on Wednesday by 0.14 percent, or 9.67 points to 6,972.69, while the broader all-shares index erased 13.61 points, or 0.31 percent to 4,351.17.
Only the industrial counter went up, rising 0.73 percent, or 76.71 points to end at 10,606.43.
Mining and oil, together with the rest of the sector indices, declined on Wednesday’s session, falling 1.23 percent, or 253.83 points to 20,381.48. Services went down 0.77 percent, or 15.59 points to 2,002.91.
Financials fell 0.49 percent, or 8.93 points to 1,812.41, while holding firms lost 0.27 percent, or 17.16 points to 6,292. Property dipped by 0.18 percent, or 5.26 points to 2,864.07.
As expected, decliners outnumbered gainers, 109 to 65, while 36 shares were unchanged.
On Wednesday, the local stock index retreated substantially after breaching 7,000 points for the first time in Philippine stock market history.
“The momentum of Monday’s record-setting run fizzled out as investors moved to the sell side, opting to book profits. Contributing to the resurfacing of negative sentiment was a less-than expected China manufacturing numbers,” said Calaycay.