The local market fell back to the 6,500-point territory on Tuesday after surging past 6,600 on Monday as global uncertainties dampened buying sentiment.
Astro del Castillo, First Grade Finance Inc. managing director, said the market is starting to digest the uncertainties happening in the global arena, particularly the fact that the geopolitical tension in Ukraine has already made a tangible effect on the global markets.
“The Ukraine crisis had actually affected world oil prices already,” Del Castillo said.
Investors also found Tuesday’s session a perfect time to cash in their gains after the benchmark index closed above the 6,600-mark on Monday, its highest in nearly six months.
The Philippine Stock Exchange index (PSEi) fell 26.91 points or 0.41 percent or to 6,587.49, while the broader all shares lost 9.76 points or 0.25 percent to 3,959.31.
Except for financials and mining and oil, the rest of the sectoral indices were also down, led by the property counter, which slipped 20.72 points or 0.79 percent to 2,589.75.
Industrial firms retreated 57.87 points or 0.58 percent to close at 10,041.11, while holding firms gave up 13.09 points or 0.22 percent to 5,982.92. Services fell 2.04 points or 0.10 percent to 1,953.37.
A total of 1.3 billion shares were traded valued at P7.6 billion, with advancers barely outnumbering gainers 81 to 79.
The most actively traded stocks were DoubleDragon Properties Corp., which surged 28.67 percent to P3.86 per share; Ayala Land Inc., whose shares plummeted 1.28 percent to P30.90 apiece; First Gen Corp., whose share price sank 8.95 percent to P18.10; Philippine Long Distance Telephone Co., whose shares inched up 0.37 percent to P2,746; and SM Prime Holdings Inc., whose shares ended unchanged at P15.50.
“All eyes were on DoubleDragon,” Nieves Securities Inc. analyst Miko Sayo said.
On Monday, Philippine shares closed above the 6,600 level on strong investor interest in market debutante DoubleDragon Properties and support for financial firms, with most investors ignoring Wall Street’s correction on Friday.
The local market will be closed on Wednesday (April 9) for a public holiday to commemorate the Day of Valor (Araw ng Kagitingan).