The latest decline in Wall Street sent shockwaves to the Philippine market, with the local benchmark index failing to prolong the modest uptrend it sustained in the past two days.
Elizabeth Abadillo, analyst at brokerage Angping and Associates Securities Inc., said in a text message that the market snapped out of its two-day gaining momentum because both local and overseas factors. According to her, profit-taking continued on the local side, given the absence of fresh news that could lead the market up. She also said that the market was dragged down by the decline in Wall Street.
The Philippine Stock Exchange index (PSEi) concluded Thursday’s trade in the red as it shed 51.34 points, or 0.77 percent to 6,538.77, while the broader all-shares index went down by 0.59 percent, or 23.48 points to 3,973.89. Except for mining and oil, majority of sectoral indices also ended in the red, with the property counter losing 1.64 percent, or 42.93 points to 2,576.44, while industrial dipped by 0.88 percent, or 83.23 points to 9,403.99.
Holding firms also saw a decline, losing 0.72 percent, or 43.78 points to 6,011.24, as well as financials, which went down by 0.63 percent, or 43.78 points to 6,011.24. The services counter was flat with a gain of 0.03 percent, or 0.66 points to end at 2,009.11.
Mining and oil, on the other hand, gained a bit by 0.18 percent, or 23.30 points to 13,040.49. Total value turnover was also thin at P5.8 billion. Advancers lost to decliners, 45 versus 100, while 38 issues were unchanged.
Some of the top losers on Thursday were SM Investments Corp., Universal Robina Corp., Ayala Corp., SM Prime Holdings Inc., Jollibee Foods Corp., Megaworld Corp., Aboitiz Power Corp. and Robinsons Land Corp. The market has been sustaining its gains for the past two days on anticipation of the release of third-quarter corporate earnings.
On Wednesday, Philippine shares managed to register few additional points despite weak US jobs data that upset other regional markets.
Madelaine B. Miraflor