Philippine shares settled with a modest recovery after almost extending its losing streak to its seventh day.
For the first time in seven days, the Philippine Stock Exchange index (PSEi) recovered, albeit slightly, by 0.35 percent, or 21.11 points to close at 6,025.37. But the wider all-shares index remained on the red side with 0.06-percent drop, or 2.10 points to 3,679.57.
“The wipeout continued, saved only by a last-minute surge. The PSEi was poised to extend its slump to a seventh day, one day short of the longest losing streak posted in March this year, until buyers surfaced at the ‘trading-at-last’ phase,” Jun Calaycay, Accord Capital Equities Corp. analyst, said.
He noted, however, that despite the recovery the year-to-date gains have narrowed to just 3.6 percent, with the threat of ending the month below the end-2012 level still looming large.
“Investors appear to have been paralyzed by the thought of the onset of a bear market—despite a still relatively unchanged outlook for the domestic economy,” Calaycay said.
Overseas, Asian markets were mixed as the Dow Jones provided little lift, advancing a mere 7 points while the S&P 500 retreated off a record close although managing to stay above 1,800 points.
Locally, it was also a mixed result for the sectoral indices after three of them managed to end on the green side. Services registered the largest decline, losing 1.18 percent, or 22.13 points to 1,846.85, followed by mining and oil, which went down 0.65 percent, or 78.05 points to 11,877.58. The financials counter ended negatively flat with a 0.21-percent dip, or 3.10 points to 1,465.77.
Holding firms, on the other hand, had the most significant improvement, advancing by 1.04 percent, or 57.27 points to 5,559.31, while the industrial counter rose by 0.79 percent, or 68.81 points to 8,746.32. Property went up by 0.21 percent, or 4.93 points to 2,322.03.
Total value turnover stood higher at P22.3 billion, with gainers still outnumbered by losers, 51 to 111. Some of the top losers on Tuesday were JG Summit Holdings Inc., Philippine Long Distance Telephone Co., Metropolitan Bank and Trust Co., SM Prime Holdings Inc., Megaworld Corp., Globe Telecom Inc. and Vista Land and Lifescapes Inc.
During the previous trade, Philippine shares prolonged its week-long correction that started since last Monday. The benchmark index resumed trading on Monday at an even weaker pace, extending its 5-day correction with a 1.32-percent fall, or 80.58 points to close at 6,004.26. The wider all-shares index went down by 0.97 percent, or 35.96 points to 3,681.67.