Stock index declines on sluggish trading

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The Philippines stock market went through a minimal up and down movement throughout the Tuesday trading session, and ended with a decline because of the impacts of slow earnings for the third quarter, the 2.9-percent inflation rate for October, as well as concerns of a possible tapering by the US Federal Reserve of its bond-buying program.

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Rafael Supangco, research head of Angping and Associates Securities Inc., said over the phone that the market was down because of some factors: “less liquid” market because of the slowdown of third-quarter earnings; as well as the renewed US tapering concerns.

“Historically, the third quarter is always at a slow pace because of the pressure of the upcoming holidays [by fourth quarter],” he said.

“The renewed concerns over the US tapering will also affect the market. [The US Federal Reserve] are hinting of a possible taper that contributed to the selloff,” Supangco added.

Astro del Castillo, First Grade Finance Inc. managing director, agreed with Supangco, saying that “there was an immediate action in the third quarter because of pressure” brought about by holidays to come.

He also said that the rise in the October inflation rate also contributed to the continued downward trend of the market, despite making gains in the first hour of trading session.

Though recording a minimal decline since last week, del Castillo said that the market will remain “positive in the coming months.”

For his part, Supangco said that the market will be under “continuous sideways movement.”

On Tuesday, the Philippine benchmark stock index ended with a drop—0.36 percent, or 23.81 points—to 6,519. The wider all-shares index also went down by 0.18 percent, or 7.09 points to 3,984.72.

All the indices dropped on Tuesday except for industrial, which gained 14.80 points, or 0.16 percent to 9,363.72. Mining and oil, on the other hand, registered the biggest loss with 38.91 points, or 0.30 percent to 12,728.90.

Financials slumped 0.43 percent, or 6.92 points to 1,595.95, while property dipped by 1.07 percent, or 28.59 points to 2,633.86.

The holding firms index was down by 0.30 percent, or 17.85 points to 5,916.20 while the services index skidded by 0.18 percent, or 3.50 points to 1,984.40.

The most actively traded stocks also registered some losses in Tuesday’s trading except for Global-Estate Resorts Inc., which gained 6.87 percent. Meanwhile, Alliance Global Group remain unchanged.

Among the actively traded shares that registered a decline include Travellers International Hotel Group, SM Prime Holdings, Metropolitan Bank and Trust Co., Philippine Long Distance Telephone Co., Ayala Land Inc., SM Investments Corp., Universal Robina and Metro Pacific Investments Corp.

Decliners beat advancers, 83 against 67, while 35 issues remained unchanged. Value turnover ended at P29.5 billion while total volume account for 3 billion shares.

On Monday, the Philippine Stock Exchange index opened the week with a 0.64-percent decline, or 41.99 points to 6,543.39. Meanwhile, the broader all-shares index went down by 0.54 percent, or 21.31 points to 3,955.81.

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