LOCAL shares snapped a two-day winning streak on Thursday, with the benchmark index dropping below 7,200 points as part of “consolidation” following generally positive reactions to third-quarter corporate earnings results.
The bellwether Philippine Stock Exchange index (PSEi) ended 0.47-percent lower or 34.24 points at 7,198.63. The wider All Shares index was down 0.39 percent or 16.54 points at 4,237.06.
Harry Liu, president of Summit Securities Inc., said in a phone interview that the market dip on Thursday is a part of the market’s consolidation phase following generally positive earnings results, and before it moves upward by year-end.
“The market basically is still in a medium-term consolidation in a window of 7,000 to 7,100 and 7,300 to 7,350 points. Sooner or later, the market will be moving out of this consolidation toward a stronger trend by year-end,” Liu said.
“So far, the market is trying to go higher than lower. The market is well within the radar to push up over the long term,” he added.
Liu said that the even though the benchmark stock index is in generally good shape, “watch out if the index will go lower than 7,100. Then it will go down further. But if it tries to move up to 7,273 to 7,283 points, it will be higher next week.”
“The overall long-term view is still good. Earnings will still be the driver for optimistic year-end targets,” he said.
All the sectoral subindices ended in the red Thursday except industrials, which increased slightly by 0.07 percent or 7.84 points to 11,682.76. Financials were down 0.53 percent or 9.10 points at 4,237.06; holding firms decreased 0.75 percent or 47.59 points to 6,281.78; services declined 0.55 percent or 11.70 points to 2,118.81; mining and oil slipped 0.50 percent or 76.69 points to 15,186.47; and property was off 0.05 percent or 1.37 points at 2,868.32.
PLDT was the most actively traded company on the day but ended flat. Notable decliners included Ayala Land Inc., Cebu Air Inc., Alliance Global Group, Metrobank, Energy Development Corp. and Ayala Corp. Active gainers were 8990 Holdings, BDO Unibank Inc. and Premium Leisure Corp.
Total volume traded was at 1.29 billion shares, amounting to P6.99 billion, with losers outnumbering gainers 94 to 71. 49 issues closed unchanged.
On Wednesday, the PSEi closed up 0.39 percent or 28.32 points at 7,232.87, while the broader All Shares index rose 0.38 percent or 15.93 points to 4,253.60.