Share prices retreated on Thursday as the market took a break after reaching new all-time highs.
The bellwether Philippine Stock Exchange index (PSEi) dropped 0.60 percent or 50.04 points to finish the day at 8,294.01. The broader All Shares declined 0.47 percent or 23.19 points to close at 4,884.65.
“The market has taken a breather today after yesterday’s (Wednesday) breakout above key resistance level,” AP Securities, Inc. equities trader Gerard Barboza said.
Wednesday saw the market close at a fresh record of 8,344.05, with the intraday peak also hitting a high of 8,377.79. The PSEi had also broken past the 8,300 level a day earlier to close at an all-time high of 8,312.93.
“[W]ith the new threshold for the index above previous all-time highs, investors [will[ start to take cues if this bull run will be sustainable at high P/E levels,” he added, with the best case scenario pegging the support level at 8,000.
“We’re seeing a lot of good momentum also in the global markets and that should add to the buying sentiment locally,” Barboza said.
Justino Calaycay Jr., senior research analyst at Philstocks, said a fresh World Bank cut to its growth forecast for the Philippines likely contributed to the market decline.
The World Bank on Wednesday said it was trimming its 2017 growth forecast for the country to 6.6 percent from 6.8 percent on account of delays in the government’s infrastructure program.
Most sectoral indices fell on Thursday except for financials and services.
Over 1.2 billion shares valued at P6.7 billion changed hands.
Losers led winners, 106 to 90, while 50 issues were unchanged.