Local equities retreated to just under 7,200 points on Thursday as global concerns about unrest in Hong Kong, a sharp decline in the US consumer confidence index, and the persistence of the Ebola epidemic affected the market for a second day.
At one point down nearly 80 points during the trading session, bellwether Philippine Stock Exchange index (PSEi) recovered slightly by the closing bell, ending 71.80 points or 0.99 lower at 7,196.26, while the All Shares index likewise dropped 1.009 percent or 43.33 points to 4,250.52.
Harry Liu, president of Summit Securities Inc., said via phone interview that the market is in the midst of a medium-term consolidation, and that it is “still intact over the long term” despite the local equities following the negative leads of global markets.
“The market is down on the Ebola concerns, the US consumer confidence [index], the peso weakening, the Hong Kong situation. But it’s only a medium-term consolidation for the moment. Support has been moved to 7,000,” Liu said.
Asked if the market will be in a bearish mood because of the influence of concerns overseas, Liu said that the sell-off is only “temporary” and that the market is just in the middle of an extended medium-term consolidation.
“The market is still uptrend for long term, but for medium term, it will be consolidation. In terms of domestic geopolitical news, it has very minimal effect. But, the good thing is corruption is being addressed,” he said.
“We don’t know long will this last [Hong Kong protests] but the selling pressures is just a medium term concern. Investors are just being careful,” he added.
The Philippine Stock Exchange index (PSEi) is seen trading within range of 7,000 to 7,400 points.
Jason Escartin, investment analyst at F. Yap Securities Inc., said that the steep declines in earlier trades were slightly tempered at the market close by the some fund managers taking advantage to position, as well as other local developments.
“Participants took their cue from Wall Street’s overnight slump. Declines might have been limited however, as some fund managers seize this dip to position. While the looming power shortage is being addressed, some has taken light from improving decongestion in Manila’s ports,” he said.
The mining and oil counter led the decline among the subindices, shedding 2.60 percent or 440.58 points to 16,528.68. The sectoral indices were allin the red as the market capped the Thursday trading session: financials decreased 0.62 percent or 10.57 points to 1,687; industrials down 1.06 percent or 122.71 points at 11,502.23; holding firms declined 0.87 percent or 56.24 points to 6,373.63; services fell 1.02 percent or 21.63 points to 2,100.82; and property slumped by 1.77 percent or 50.28 points to 2,796.99.
Most of the ten most active issues lost on the day as well, with only Metropolitan Bank and Trust Company and Abra Mining and Industrial Corp. posting modest gains. Philippine Long Distance Telephone Company continued its losing streak, and was joined on the negative side of Thursday’s scorecard by Aboitiz Power Corp., Universal Robina Corp., Nickel Asia Corp., Megaworld Corp., Ayala Land, BDO Unibank, and Premium Leisure Corp.
Volume was again heavy on Thursday, with 40.37 billion total stocks traded valued at P9.414 billion. Decliners led advancers, 139 to 41, while the unchanged stood at 47 shares.
On Wednesday, the PSEi decreased 0.21 percent or 15.01 points to 7,268.06, while the broader All Shares index also declined by 0.27 percent or 11.60 points to 4,293.85.