Stocks extend losses; above support

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The Philippine stock market closed lower for the second day in a row but managed to stay above the support level of 7,600 points.

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The Philippine Stock Exchange index (PSEi) was down by 0.23 percent or 17.56 points to 7,613.15, while the All Shares dipped by 0.09 percent or 4.06 points to 4,436.98.

Bryan Gomez, Citisecurities Inc. co-head of investments, said that the market succumbed to investors cashing in on gains after the heady days of January.

“Market continues to hold its ground against profit booking (profit taking) in some issues. Third liners like FLI (Filinvest Land Inc.) and COSCO (Cosco Capital Inc.) are getting the better share of the market interest this round with blue chips correcting to neutral,” Gomez said.

“The prospects for the next few days is still 50-50, whether the market will resume the advance that it has before last week or succumb to volatility overseas,” he added.

For his part, Accord Capital Equities Corp’s Justino Calaycay Jr. said: “At the close, PSEi eventually narrowed losses to only 17 points, settling at 7,613.15, still above the psychological support line. Breadth was almost even suggesting that tomorrow could
see a technical rebound, at the very least,” Calaycay said.

Market sentiment today is likely to be positive ahead of the January inflation numbers release on Thursday.

The sectoral indices ended mixed with mining and oil, financials, and services at the green side while property, holding firms and industrial counters stood at the red corner.

Despite going down on the news of discounted overnight share sale, GT Capital Holdings Inc. rebounded and was one of the top gainers on Tuesday, along with Global Ferronickel Holdings Inc. and Security Bank Corp.

The rest were active decliners including Alliance Global Group Inc, Metropolitan Bank and Trust Company, Energy Development Corp., Ayala Land Inc., SM Investments Corp., BDO Unibank Inc., and Universal Robina Corp.

Decliners ended higher than advancers, 86 to 79, while the 46 issues did not changed hands. Shares traded reach 1.98 billion, valued at P18.01 billion.

On Monday, the benchmark stock index declined by 0.77 percent or 59.20 points to 7,630.71, while the All Shares index decreased by 0.54 percent or 24.24 points to 4,441.04.

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