THE Philippine benchmark stock index went down for the third consecutive time this week to almost plunge below the 6,000-point mark, as investors were still worried over the possible tapering of the United States Federal Reserve bond-buying program.
Rafael Supangco, Angping and Associates Securities Inc. research head, said that the market is bound to go sideways as concerns over the US Federal Reserve tapering continues.
“[Market is down because of] fears of tapering. US data is mixed but investors opt to take risk off. The market would continue to move sideways with a downward bias on weak volume because of this,” he said.
For his part, Michaelangelo Oyson, chief executive and managing director of BPI Securities Corp., told The Manila Times that investors would likely to stay at the sidelines in the coming days to yearend.
“The market was weak today following the lead in other markets in the region.
Investorsare awaiting market guidance coming from US nonfarm payroll and from the upcoming FOMC [Federal Open Market Committee] meeting. Investors will likely remain in the sidelines in the coming days awaiting catalysts,” Oyson said.
The Philippine Stock Exchange index (PSEi) erased 74.28 points, or 1.22 percent to 6,030.95, while the broader all-shares index subtracted 30.55 points, or 0.82 percent to 3,703.06.
Only industrial gained among the sectoral indices, with a 0.09-percent lift, or 8.11 points to 8,742.49 while property—though positive by noon—went down by 1 percent, or 23.67 points to 2,333.90.
Financials skid by 0.85 percent, or 12.59 points to 1,475.29, while holding firms went down by 1.41 percent, or 79.01 points to 5,513.56.
Also, mining and oil descended by 1.20 percent, or 145.52 points to 11,993.77, while services registered a decline of 1.47 percent, or 28.10 points to 1,882.27.
Among the most active companies on Thursday were Ayala Corp., which gained, and Universal Robina Corp. that ended flat.
The most active losers include Metropolitan Bank and Trust Co., Philippine Long Distance Telephone Co., JG Summit Holdings Inc., SM Investments Corp., Megaworld Corp., Alliance Global Group Inc., Robinsons Retail Holdings Inc., and BDO Unibank Inc.
Losers beat gainers, with 95 to 56, while unchanged shares stood at 39. Total volume traded amounted to 861.9 million while value turnover reached P6.3 billion.
On Wednesday, the PSEi made its second consecutive drop within the week, by 1.20 percent, or 74.27 points to 6,105.23, while the wider all-shares index went down by 0.88 percent, or 33.21 points to 3,733.61.