Market correction took over the benchmark stock index as investors cashed in on four consecutive days of gains, closing out the week with a 0.74 percent decline in Friday trade.
The Philippine Stock Exchange index (PSEi) dropped 52.49 points or 0.74 percent to remain just above the 7,000 psychological barrier at 7,008.51, while the wider All Shares board let go of 32.48 points or 0.77 percent to close at 4,168.32.
Jason Escartin, investment analyst at F. Yap Securities Inc., said that the market on Friday was “purely positioned on correction and locked in gains on rallies” made since the start of the week.
“Given the market’s strong turnout [P11 billion for the week] and resumption of net foreign buying, participants checked for clues to its continuity Friday, as market gains were already into the fourth consecutive session,” Escartin said.
All the sectoral indices registered declines on Friday, led by mining and oil, which shed 204.78 points or 1.17 percent to 17,311.25. Financials were down 0.97 percent or 16.03 points at 1,639.90; holding firms slipped by 0.93 percent or 58.66 points to 6,223.35; industrials were off 0.86 percent or 92.14 points at 10,656.53; services slipped by 0.71 percent or 15.43 points to 2,172.00; and property gave up 10.29 points or 0.39 percent to close at 2,641.20.
The most actively traded stocks were likewise all losers on Friday, save for PLDT, Ayala Corp., and Ayala Land Inc., which all ended unchanged at P3,250, P703, and P32 per share, respectively.
1.9 billion shares were traded, for a total turnover of P9 billion. Declining issues far outpaced advancers, 120 to 55, while 49 were unchanged.
“While technical pauses [like Friday]would be considered ‘ideal’, a follow-through ascent might prod some to join the bandwagon, which could propel the PSEi towards 7,100-7,200 territory,” Yap Securities’ Escartin commented.
Analysts remain optimistic about the market despite Friday’s decline. Miguel Agarao, analyst at Wealth Securities Inc., said that the market is poised to go up in the next few days, in a “follow through” on companies’ gains, particularly in connection with the recently announced recalibration of the MSCI Philippines Index.
The market’s consensus support level is at 7,000, while resistance is seen at 7,100 to 7,120.
On Thursday, the PSEi breached the 7,000 mark for the first time this year, recording its highest close since May 29, 2013, when the index reached 7,228.57. Thursday trading closed at 7,061 after an intraday high of 7,093.06, picking up 1.07 percent or 74.76 points by the end of the market session, while the broader All Shares index advanced 0.56 percent or 23.25 points to close at 4,200.80.