Philippine shares closed lower on Monday on profit-taking after several days of gains, driven further at the end of last week by the sovereign credit rating upgrade obtained by the country from Standard and Poor’s.
“The PSEi [Philippine Stock Exchange index] eased off its 11-month high with profit-taking dominating the first hour of trade. Prices, however, stayed within last week’s bands,” said Justino Calaycay, analyst at Accord Capital Equities Corp.
Overseas, Asian markets were mixed as investors balanced the risks arising from developments in Ukraine and rising unrest in Thailand, while US stocks slightly gained Friday while European markets skidded.
“Last week’s surprise ratings upgrade from Standard and Poor’s appears to have been set aside—at least for now,” Calaycay said. The PSEi fell 35.92 points or 0.52 percent to 6,811.34, while the wider all shares lost 10.43 points or 0.25 percent to 4,105.63.
“The week opened with a -11.98 points slide with the balance of news tilted slightly on the negative—externally that is—trumping the momentum of Friday’s 1.2 percent surge to a fresh high on the back of an S&P credit rating upgrade,” Calaycay commented.
Of all the sub-indices, only two sectors managed to end higher while the rest ended in the red. Industrials gained 25.04 points or 0.24 percent to 10,276.81, while holding firms went up 6.93 points or 0.11 percent to 6,211.45.
Services, on the other hand, fell 28.88 points or 1.39 percent to 2,051.54, followed by mining and oil, which was down 193.19 points or 1.16 percent to 16,403.32. Property lost 15.59 points or 0.57 percent to 2,707.22, while financials retreated 6.94 points or 0.43 percent to 1,617.71.
Overall, a total of 1.1 billion shares worth P8.0 billion were traded on Monday. Advancers narrowly outnumbered decliners 89 to 86, while 46 stocks were unchanged.
Some of the most actively traded stocks on Monday were Philippine Long Distance Telephone Co., down 2.42 percent at P2,902; Universal Robina Corp., up 1.42 percent at P150; Ayala Land Inc., down 0.63 percent at P31.75; and Double Dragon Properties Corp, up 1.78 percent at P6.88.