Stock index snaps anew on consolidation


Still locked in a seesaw movement, Philippine shares did not dwell too long on the green side and snapped out of its one-day recovery on Wednesday.

Eduardo Francisco, president of BDO Capital, said the retreat was just part of a consolidation.

“Its part of the consolidation but we’re still hopeful. Chartists are looking at it. Philippine companies are going sideways. What it takes for it to stabilize is the US? Has it already recovered? How much is the job growth?” he added.

Jun Calaycay of Accord Capital Equities Corp., on the other hand, said that macro conditions as revealed and supported by official economic data suggest the time is ripe to beef up a portfolio’s equity component. Yet, something is holding back the locals from doing that.

“The benchmark index remains challenged to make a sustained break of the 6,300 line, and the next earnings cycle should provide sufficient incentives to make it happen,” he added.

The Philippine Stock Exchange index retreated on Wednesday by 18.84 points, or 0.30 percent to 6,308.65, while the wider all-shares index shed 17.56 points, or 0.45 percent to 3,858.65.

“A swath of generally positive news ushered in mid-week trades but failed to lift sentiments at the local bourse, even as its peers in the narrower Southeast Asian region were mostly higher. The broad continent was, however, mixed with the Nikkei and India giving up early gains,” Calaycay said.

All of the sectoral indices went down except for holding firms, which managed to gain 19.73 points, or 0.34 percent to 5,751.81.

Mining and oil registered the largest decline, diving by 2.14 percent, or 304.45 points to 13,934.11, followed by the property counter, which went down by 1.70 percent, or 42.00 points to 2,424.83.

Services lost 1 percent, or 19.09 points to close at 1,884.44, while financials ended negatively flat by 0.39 percent, or 6.21 points to 1,589.45. Industrial was flat with a 0.20-percent dip, or 19.05 points to 9,550.92.

Trading activity also remained light as the bears kept their dominance over the bulls, 107 to 44. Total value turnover hit P4.54 billion.


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