Local equities trading turned sour due to market disappointment over the failure of the economy to outdo its year-earlier performance in the second quarter based on the latest data released Thursday.
The Philippine Stock Exchange index (PSEi) broke its series of wins and all-time highs for the past few weeks as GDP growth recorded 6.4 percent in the second quarter, higher than the revised 5.6 percent last quarter but lower than the 7.9 percent GDP growth in Q2 2013.
The PSEi dropped 0.83 percent or 59.76 points to close at 7,100.70, while the wider All Shares skid 0.62 percent or 26.14 points to 4,205.66.
Harry Liu, president of Summit Securities Inc., said in a phone interview that investors opted to cash in on their previous gains, drawing slightly negative sentiment over the GDP figure released on Thursday.
“I think basically it is because of the perceived disappointment from the second quarter GDP,” Liu said.
“It is not a major drop. It was mere profit taking that took place. Basically, it’s not an issue since we’re still at 7,000 points,” he added.
Only mining and oil gained among the sectoral indices, up 57 points or 0.33 percent at 17,494.80, while the rest of the subindices lost. Financials declined 0.26 percent or 4.35 points to 1,640.02; industrial dipped 0.53 percent or 58.19 points to 10,928.98; holding firms slumped 0.85 percent or 53.67 points to 6,250.11; services slipped 0.62 percent or 13.98 points to 2,234.28; and Property was off 1.44 percent or 39.04 points at 2,664.77.
Declining shares far outnumbered advancers, 111 to 71, with 47 issues unchanged. Value turnover was again over P10 billion at P10.428 billion, but only 1.372 billion shares changed hands.
Among the day’s ten most actively traded shares, Alliance Global Group Inc., Puregold Price Club Inc. and Semirara Mining Corp. all managed some gains; BPI was actively traded, but ended flat, while active losers included Philippine Long Distance Telephone Company, BDO Unibank Inc., Metropolitan Bank and Trust Company, Ayala Land Inc., Ayala Corp. and Philex Mining Corp.
Liu said that the decline in the market is not anticipated to continue due to positive stimuli to come in the next few days: End of the Chinese Ghost Month, the anticipation of the Yuletide season, and election spending beginning next year.
“It is possible that the market may go up after this since Ghost Month is close to finishing. Though its effect is just psychological, many foreign buyers may turn to the market, especially Asian buyers, the Chinese investors,” Liu said.
“There will be more stability in the market for the long term. I think it is more positive in the future,” he added.
On Wednesday, the benchmark stock index reached its sixth high for the year closing up 0.20 percent or 14.11 points at 7,160.46 with an intraday high at 7,176.23, while the wider All Shares increased 0.25 percent or 10.38 points to 4,231.80.