The Philippine stock index went down for the second straight day on Friday as some investors opted to take profits.
Juanis Barredo, chief technical analyst at COL Financial Group, said that the market fell for the second straight day as “some profit-taking ensued forced on by key 6,800 [-point] resistance,” as well as the weakening of banks “perhaps due to worries over trading gains slowing.”
Though the Philippine Long Distance Telephone (PLDT) led the declines for Friday’s trading session, dropping by 1.8 percent, Barredo added that there is “overcoming strength in retail issues” such as Jollibee Food Corp. and SM Corp.
On the other hand, Angping and Associates Securities Head of Research Juan Rafael Supangco said that the market drop and slowdown was caused by financials and services dragging down the index, as well as investors anticipating “weaker trading income.”
“Investors are anticipating weaker trading income because of the sell off in bonds and equities last May to June,” Supangco said.
For his part, Astro del Castillo, managing director or First Grade Finance Inc., said that, “Market remains lethargic due to lack of fresh leads and just ahead of Federal Reserve meeting next week.”
The Philippine Stock Exchange index (PSEi) decreased by 0.54 percent, or 36.49 points to 6,763.62, while the wider all-shares index dipped by 0.44 percent, or 18.12 points to 4,114.99.
Among the sectoral indices, industrial was the only one that registered an increase, gaining 50.44 points, or 0.50 percent to 10,085.16. Mining and oil, which was in the green at midday, lost 52.11 points, or 0.35 percent to 14,751.05.
Financials slid by 1.23 percent, or 20.11 points to 1,608.28, while holding firms descended by 0.06 percent, or 3.54 points to 6,261.68.
Services was also down by 1.26 percent, or 25.84 points to 2,032.55, and property slumped by 0.45 percent, or 12.07 points to 2,681.19.
Majority of the most actively traded shares registered a decline, which included Metropolitan Bank and Trust Co., Banco de Oro Unibank, Security Bank, Ayala Land Inc., Ayala Corp., Philippine Long Distance Telephone Co. and Alliance Global Group. Only Metro Pacific Investments and SM Investments registered an increase, while Universal Robina Corp. was unchanged.
Losers outnumbered gainers, 79 to 60, while the number of unchanged shares stood at 48. Total volume decreased, with only 760 million shares traded, while total value turnover was P5.6 billion.
According to Harry Liu, president of Summit Securities Inc., the market is still poised to go up to 7,000 point in the long term after it is done with the medium-term consolidation.
The PSEi on Thursday dipped by 0.06 percent, or 4.05 points to 6,800.11, while the all-shares index slid by 0.02 percent, or 0.81 points to 4,133.11.
Kristyn Nika Lazo