PSEi snaps 3-day rally on profit-taking

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The Philippine equities market slipped on Thursday as investors opted to take profit after pushing the index past 7,200 points to the year’s seventh high on Wednesday.

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The Philippine Stock Exchange index (PSEi) traded in positive territory in the morning session and reached as high as 7,220.51, but ended the day 1.91-percent lower at 7,204.11. The wider All-Shares index traded firmer by 0.09 percent or 3.90 points to close at 4,256.89.

Justino Calaycay Jr., equity analyst at Accord Capital Equities Corp., said the market’s fresh intraday high at 7,220.51 was driven by developments in Ukraine and Russia, but was not sustained as investors turned to profit-taking.

“Profit-taking in the market took precedence, snapping the PSEi’s three-day run,” Calaycay said. “The decline was marginal, however, and came past the mid-point of the day’s session. Its [the PSEi’s]peers in the region were also mostly lower as investors absorbed the sudden turn of events in Ukraine,” he added.

Jason Escartin of F. Yap Securities Inc. said that the morning trade did well because of the ceasefire in Ukraine and the lingering high on the country’s improved ranking in the World Economic Forum’s (WEF) Global Competitiveness index.

“Following the previous session’s rally, the market inched upward within a tight range [in the morning]as a ceasefire between Ukraine and Russia emerged, plus the aftereffects of the Philippines’s upgrade in WEF may continue to boost sentiment,” Escartin said.

But he said the market was overtaken by uncertainties about the August inflation numbers—expected to be released between 9-10 am today—and that pulled down the market.

Escartin said immediate support is at 7,200, while resistance is at 7,250 points.

Holding firms and property shares registered declines among the sectoral indices, while the other sectors all had moderate gains. The property counter was off 0.71 percent or 19.32 points at 2,718.47, while holding firms posted a slight loss of 0.05 percent or 3.16 points to 6,299.98. In contrast, financials went up 0.08 percent or 1.32 points to close at 1,651.70; industrial ended 0.33 percent or 36.92 points higher at 11,184.59; services gained 0.31 percent or 7.05 points to close at 2,259.49; and mining and oil rose 0.42 percent or 74.02 points to 17,812.99.

Among active issues, Petron Corp. was flat at P11.96 per share; Philippine Long Distance Telephone Company was up 0.58 percent or P20 at P3,460 each; Alliance Global Group Inc. gained 0.82 percent or P0.20 to P24.65; and Universal Robina Corp., finished 0.46 percent or P0.80 higher at P174 per share. Active decliners included Metropolitan Bank and Trust Company, down 0.34 percent or P0.30 to close at P87.30; International Container Terminal Services Inc., down 0.53 percent or P0.60 at P113.50; Jollibee Foods Corp., down 0.47 percent or P0.90 at P192 each; and Ayala Land Inc., down 1.63 percent or P0.55 at P33.15 per share.

Decliners outnumber advancers, 99 to 76, while 52 issues were unchanged. Total volume amounted to 1.7 billion shares, while value turnover was at P11.77 billion.

On Wednesday, the main PSEi had its seventh high this year, surging 99.46 points or 1.40 percent to close at 7,206.02, recording an intraday high of 7,216.41. The broader All Shares index also advanced 44.17 points or 1.05 percent to 4,252.99.

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