Stocks slip as bourse enters consolidation phase

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The stock market slipped on Wednesday as traders cashed in on a two-day run-up, marking what appeared to be the beginning of a medium-term consolidation period for the market.

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Harry Liu, president of Summit Securities Inc., said Wednesday’s session put profit-takers in the limelight.

Meanwhile, long-term investors kept to the sidelines in anticipation of the results of the US Federal Reserve meeting, said Astro del Castillo, managing director at the First Grade Finance Inc.

Liu said the market is in a “medium-term consolidation” phase, leading investors to cash in on recent gains to prepare for their income tax filing due around mid-week in April, the observance of the Holy Week and the summer vacation ahead.

He said the market this year may show a positive bias despite the current consolidation, given the absence of major incidents. Resistance level is seen at 6,600 to 6,800 and support is seen at around 6,300.

Local stocks ended flat on Wednesday, with the Philippine Stock Exchange index down by a slight 0.06 percent or 4.06 points at 6,462.49, while the wider all shares index firmed 0.07 percent or 2.63 points to 3,907.71.

Only industrial and mining and oil gained among the counters, with industrial adding 0.54 percent or 53.67 points to 9,991.21 and mining and oil up 1.32 percent or 190.28 points at 14,583.26.

Financials shed 0.22 percent or 3.37 points to 1,552.38 while holding firms dipped by 0.06 percent or 3.57 points 5,954.03.

Services eased 0.03 percent or 0.59 points to 1,910.94, and property dropped 0.48 percent or 11.79 points to 2,431.06.

Most active companies ended mixed, with Aboitiz Equity Ventures Inc. flat while Aboitiz Power Corp., PLDT and DMCI Holdings Inc. finished slightly higher.

The rest of most active companies lost, including International Container Terminal Services, BDO Unibank, JG Summit Holdings, Alliance Global Group, Metro Pacific Investments Corp. and Ayala Land.

Advancers outnumbered decliners 85 versus 75, while 48 stocks closed unchanged.

Total volume was at 1.6 billion shares, valued at P10.2 billion.

On Tuesday, the Philippine Stock Exchange index (PSEi) rose for a second straight day, closing 66.56 points or 1.04 percent higher at 6,466.55. The wider all shares index cimbed 35.76 points or 0.92 percent to 3,905.08.

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