• Stock index dips again on US concerns


    The Philippine benchmark stock index rebounded slightly by noon on Friday from gains in Wall Street, but ended the trading session with a drop over United States debt ceiling concerns and some profit-taking.

    The Philippine Stock Exchange index (PSEi) slumped by 0.43 percent, or 27.65 points to 6,379.81, but the wider all-shares index went up by 0.25 percent, or 9.65 points to 3,850.13.

    Rafael Supangco, research head of Angping and Associates Securities, said in a text message that the climb in the earlier part of the trading session was brought about by Wall Street gains the night before.

    “[Market] was up more in the morning but profit-taking pushed the index down to almost unchanged,” he said.

    Supangco, as well as Summit Securities President Harry Liu and First Grade Finance Managing Director Astro del Castillo, said that the market was affected by concerns over the upcoming debt ceiling decision of the US Congress on October 1, as worldwide reports said that date might be a start of a “possible [US] government shutdown.”

    Liu and del Castillo told The Manila Times that the market is in a “consolidation mode” that would result in the up and down movement of the stock indices.

    “Resistance is near 6,500 [-point] level while medium term is consolidating well. The support level is at 6,100, and long term is very much uptrend without any new crisis buying on correction level,” Liu said.

    For his part, del Castillo said that investors are “mostly on the sidelines” for Friday’s session, with the escalating concerns toward the October 1 US Congress debt ceiling decision that would “affect the local market’s performance.”

    Meanwhile, the sectoral indices ended mixed with financials dropping 9 points, or 0.56 percent to 1,589.08, and industrial adding 44.19 points, or 0.48 percent to 9,335.40.

    Holding firms dipped by 0.57 percent, or 32.79 points to 5,678.14, while services slid by 0.59 percent, or 11.82 points to 1,988.05.

    Mining and oil, on the other hand, increased slightly by 0.02 percent, or 2.91 points to 12,649.83, and property advanced by 0.52 percent to 12.80 points to 2,489.31.

    Among the most actively traded shares, Alliance Global Group, Philippine Long Distance Telephone Co., Metropolitan Bank and Trust Co. and BDO Unibank Inc. lost some value; while the others LT Group, Vista Land, SM Prime Holdings, Jollibee, Metro Pacific Investments and Ayala Land ended the week with gains.

    Though the benchmark index registered a slight loss, advancers still outnumbered decliners, 84 against 69, while the unchanged issues stood at 34.

    Total volume and value turnover was 1.5 billion shares and P6 billion, respectively.

    On Thursday, the PSEi dipped for the third time this week, or by 0.20 percent, or 12.96 points to 6,407.46, while the broader all-shares index went down by 0.34 percent, or 13.06 points to 3,840.48.


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