Philippine equities retreated on the back of profit-taking on Monday as major Asian markets reeled from the political crisis in Ukraine.
The Philippine Stock Exchange index (PSEi) dropped 0.27 percent, or 17.47 points to finish at 6,407.52, while the wider all-shares index shed 0.23 percent, or 8.78 points to 3,857.88.
Richard Anthony Liboro, BPI Securities Corp. Director, said the decline indicated an “overbought market.”
“It is about time for a market correction . . . it is only a healthy correction, nevertheless, there is still volatility for the near term and positive bias for the longer term,” he said.
Reports of good earnings by listed companies for 2013 have lent “a more positive effect” to the market.
Jun Calaycay of Accord Capital Equities agreed with Liboro, saying that investors opted to take profits “to liquidate winning positions, snapping a three-session run.”
“Nevertheless, the bulls fought back at the 6,370-[point]support line, narrowing the day’s losses to only negative 17.47 points at the close,” he said.
“We can expect the market to turn green inside the week, possibly testing a foray towards the 6,500-[point]mark. Today’s action validated support at 6,370 [points]with expectations the index should hold above 6,400 [points]until the profits reporting season unwinds,” Calaycay added.
For sectoral indices, holding firms inched up 0.09 percent, or 5.37 point to 5,828.09, and mining and oil posted an increase of 0.63 percent, or 89.78 points to 14,394.82.
The rest of the indices dropped, with financials losing 0.61 percent, or 9.49 points to 1,548.52, and industrials shedding 0.62 percent, or 61.87 points to 9,846.55.
Property incurred the biggest loss of 1.01 percent, or 25.08 points to 2,465.64, while services eased 0.03 percent, or 0.61 points to 1,894.55.
Only Megaworld Corp. ended unchanged among the most actively traded companies.
Universal Robina Corp., Ayala Land Inc., Emperador Inc. and DMCI Holding Inc. all posted losses.
Gainers among the most active stocks included Aboitiz Power Corp., Philippine Long Distance Telephone Co., International Container Terminal Services Inc., JG Summit Holdings Inc. and SM Investments Corp.
Decliners outnumbered advancers, 84 to 74, while 55 were unchanged. Total volume traded stood at 1.2 billion shares while value turnover reached P7.7 billion.
On Friday, the PSEi recorded a 1.1-percent ascent, or 70.20 points higher at 6,424.99, ending the week on a positive note. The broader all-shares index was up 0.89 percent, or 34.26 points, at 3,866.