SHARE prices retreated anew on Wednesday as weaker earnings of Globe Telecom and Cebu Pacific Air hit market sentiment.
“On the domestic front, several companies like Globe and Cebu Air reported bad earnings. Globe most likely affected the telecommunications sector, pulled down telco which accounts a big percentage of the index,” Regina Capital Corp. President Marita Limlingan said in an interview.
“Of course, seeing these, people would take profits to be on the safe side,” she said.
Ayala-led Globe reported a net income of P3.8 billion in the first quarter, down 13 percent from P4.3 billion a year earlier. Cebu Pacific Air said its net profit fell 68.2 percent to P1.283 billion from P4.037 billion.
On the global front, Limlingan noted that US markets declined overnight after President Donald Trump sacked Federal Bureau of Investigation (FBI) Director James Comey.
Comey headed a wide-ranging investigation into the likelihood Russian intervention to sway last year’s US election.
COL Financial Sales Vice President Juanis Barredo said the market is still in profit-taking mode. “Profit-taking ensued and pressed on stock prices after many issues have reached overbought levels and neared the previous high of the index which was 8,118-8,136.”
“Two to three days of reactions are normally seen given such extensions,” he said, noting Globe helped to depress the market.
The bellwether PSEi lost 129.33 points or 1.63 percent to close at 7,794.17. The wider All Shares declined by 1.39 percent or 65.30 points to finish at 4,643.95.
All sectoral indices closed in the red. The biggest losers were SM Investments Corp. BDO Unibank Inc., Ayala Corp., SM Prime Holdings Inc. and Bank of the Philippine Islands.