PSEi snaps 8-day record-breaking rise

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Philippine shares closed lower on Wednesday, ending an eight-day winning streak in record territory as profit-takers dominated trading ahead of a national holiday.

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Trading on the Philippine Stock Exchange (PSE) is suspended Thursday as the country celebrates Day of Valor on April 9 every year. Sessions will resume on Friday, April 10.
The PSE index finished at 8,052.69 points, down 0.57 percent or 45.99 points from the previous session’s all-time high of 8,098.68.

The All Shares index dropped 0.40 percent or 18.69 points to 4,610.10.

Justino Calaycay Jr., analyst at Accord Capital Equities Corp., said profit-taking pulled the market back ahead of a one-day holiday, with investors weighing all fresh external leads and opting to halt the market’s “eight-session, record-setting spree.”

“The thinning value turnover, however, offers one proof of this growing apprehension — investors are just not too aggressive on the upside, and in some instances, when such [apprehension]manifests in trading, they do not hold on [to their shares]for long,” Calaycay said.

“The option to book even marginal profits is heightened and investors are rather quick to head to the exits at rallies,” he added.

Trading volume reached a total of 1.31 billion shares, valued at a lower-than-average P8.37 billion. As of the first quarter of this year, the average daily turnover was P10.87 billion.

Local sentiment also got dampened by a dip in the US markets overnight – the Dow Jones Industrial Average ended down 5.43 points, the S&P 500 lost 4.29 points, while the Nasdaq shed 7.08 points.

Except for the services counter, which posted gains, the other subindices finished in the red, led by a 1.20-percent fall in the industrial sector.

Among the blue chips, Philippine Long Distance Telephone Company closed higher, Ayala Land Inc. ended flat, while the rest declined.

Active losers were BDO Unibank Inc., Ayala Corp., Metro Pacific Investments Corp., D&L Industries Inc., Globe Telecom Inc., Metropolitan Bank and Trust Company, SM
Investments Corp. and Universal Robina Corp.

Decliners slightly outnumbered advancers 86 to 83, while 58 issues closed unchanged.

On Tuesday, the bellwether PSEi hit an intraday peak of 8,136.97 points before paring the day’s gains to a modest 0.56-percent or 44.94 points to 8,098.68, the 26th time this year it closed at a record high. The broader All Shares index firmed 0.47 percent or 21.71 points to 4,628.79.

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