PSEi retreats after briefly touching 8,000 level
STOCKS slipped on Tuesday, taking a breather from three straight sessions of gains and failing to sustain the Philippine Stock Exchange index’s (PSEi) rally past 8,000 level.
Still, the index ended yesterday’s session giving up those gains and lost 0.48% or 38.83 points to close at 7,923.50.
The broader all-shares index also ended in the red, falling by 0.46% or 22 points to close at 4,709.25
“Stocks were up for the past three days and we experienced some correction,” Regina Capital Development Corp. President Marita A. Limlingan said in a mobile phone message. “We, however, see the market going generally up as inflation is contained and GDP forecast is within range.”
The first quarter GDP data is due out on May 18.
Socioeconomic Planning Secretary Ernesto M. Pernia had said that the economy likely grew around 7% during the period, a pace he last week said would be sustained this second quarter.
All counters ended in the red yesterday except holding firms which saw a modest 0.01% rise or 1.05 points to end Tuesday’s session at 8,051.69.
Mining and oil led the losses dropping 1.07% or 137.97 points to 12,671.71 followed by industrial which slipped 0.91% or 105.81 points to 11,420.05.
Property stocks lost 0.74% or 26.71 points to 3,564.54.
Services fell 0.75% or 12.52 points yesterday to 1,649.79, while financials declined by 0.53% or 10.33 points to 1,929.73.
Summit Securities, Inc. President Harry G. Liu also said yesterday that the decline was due to a “technical consolidation.”
“Looks like there’s nothing in the global scene that has changed so the market just adopted a sideways behavior. We saw the same drivers -- mid year reports coming out, new French President being monitored, the newly appointed BSP (Bangko Sentral ng Pilipinas) governor -- but we also saw some consolidation,” Mr. Liu said in a phone interview.
“We’ll continue on this trend, setting platform for an upward trajectory. What will change the momentum is any positive development on the economic front... then we could breach the 8,000 mark and experience more volatility at that level,” he added.
Investors welcomed the appointment of central banker Nestor A. Espenilla, Jr. as the new BSP governor, replacing two-termer Amando M. Tetangco, Jr. who steps down in early July, since “market didn’t show any negative,” the analyst from Summit Securities further said.
Yesterday saw decliners trumped advancers, 128 to 83, while 42 stocks were unchanged.
Investors traded 2.55 billion issues on Tuesday valued at P9.68 billion.
Foreign funds bought more shares than they sold.
Analysts put the resistance level at 7,900 to 8,000 while the support at the 7,600 to 7,700 level. -- Imee Charlee C. Delavin