With the onset of the so-called “ghost month,” the Philippine stock market started the week with profit-taking that sent the benchmark index down.
On Monday, the Philippine Stock Exchange index (PSEi) went down by 0.68 percent, or 45.96 points to close at 6,717.66, while the wider all-shares barometer plummeted 0.70 percent, or 28.94 points to 4,086.05.
Jonathan Ravelas, BDO Unibank Inc. chief market strategist, said in a text message that profit-taking took place following the market’s inability to stay above the 6,800-point level, casting a shadow of doubt to the recent rally.
“A break below the 6,630-level could signal that a near-term top is in place at 6,829.96
and a retest of the 6,350-level could occur,” Ravelas said.
Accord Capital Equities Corp. analyst Jun Calaycay said that for the next few days, the market expects fundamental factors to dictate the tempo and direction of trades on the interim.
“The charts may eventually have their satisfaction [on the]post earnings season coinciding with the onset of the traditional ‘ghost month’,” Calay-cay said.
According to him, the prospect of a sovereign rating upgrade to investment status from Moody’s, the easing of concerns in global markets over the US Federal Reserve’s stimulus stance and the expected inflow of positive corporate earnings results in the second quarter should provide sufficient force to balance and buffer any unanticipated headwinds that spring upon the markets from time to time.
Majority of the sub-indices also dropped on Monday, with financials registering the largest decline of 1.86 percent, or 29.96 points to 1,578.32, followed by the property counter, which went down by 1.24 percent, or 33.24 points to 2,647.95.
Industrial fell by 0.88 percent, or 89.03 points to 9,996.13, while holding firms lost 0.50 percent, or 31.42 points to end at 6,230.26.
Mining and oil, on the other hand, posted a significant improvement with a 3.70-percent increase, or 545.69 points to 15,296.74, while services gained 15.51 points, or 0.76 percent to 2,048.06.
Total value turnover remained thin at P5.67 billion as decliners outshined gainers, 101 to 59, while 34 issues were unchanged.
Some of the most actively traded stocks were SM Investments Corp., BDO Unibank Inc., Metropolitan Bank and Trust Co., Philippine Long Distance Telephone Co., Alliance Global Group Inc., Lepanto Consolidated Mining Co., Ayala Land Inc., Metro Pacific Investments Corp., SM Prime Holdings Inc. and LT Group Inc.
Last week, share prices rose for a fifth straight week, suggesting investors have found part of the footing it lost to the May to June meltdown.
The PSEi added 142.6 points higher, bringing the five-week aggregate rise to 581.45 points, or 9.4 percent, regaining more than half of the losses sustained just a month back.