PSEi declines after breaching 8,600 level intraday

AFTER rallying above 8,600 intraday, the main index ended the week in the red as investors decided to pocket their gains from the previous day’s record.

The bellwether Philippine Stock Exchange index dropped 139.89 points or 1.64% to 8,376.13 on Friday.

The broader all-shares index also fell 58.07 points or 1.17% to 4,898.90.

The 30-member benchmark touched an intraday high of 8,605.15 points on Friday, which was also a record.

Nagkaroon ng (There was) profit-taking with the last day of the week. But the overall picture was very positive, with the market getting out of the 8,500 recently,” Summit Securities, Inc. President Harry G. Liu said in a phone interview.

Mr. Liu noted that investors are pinning their hopes on the Association of Southeast Asian Nations meeting happening in the country in a week, as well as the government’s goal to build more infrastructure and have the tax reform package passed and implemented soon.

“For us, it’s a healthy correction for the market. We are still optimistic about the market since most of the companies will release their earnings report next week and we’re waiting for the GDP (gross domestic product) release on the 16th,” UPCC Securities Corp. Equity Trader Aristotle D. Reyes, Jr. said in a text message.

Sectoral indices were mostly in negative territory on Friday. Holding firms plummeted 185.61 points or 2.12% to 8,555.68; services went down 34.53 points or 2.02% to 1,677.62; financials slid 28.3 points or 1.37% to 2,036.16; industrials edged down 109.03 points or 0.99% to 10,826.34 points; and property fell 11.47 points or 0.28% to 4,003.48.

Only mining and oil saw gains, increasing 79.37 points or 0.6% to 13,280.95 points.

Volume thinned on Friday to 1.03 billion shares worth P9.79 billion from Thursday’s P9.5 billion with 1.47 billion shares changing hands.

Decliners trumped advancers at 108 to 77, while 58 names closed unchanged.

Foreigners bought shares netted at P620.435 million, lower than the P758.47-million inflow seen on Thursday.

“Despite the sell-off today, foreigners were still net buyers probably because of rosy economic growth outlook for the country after the current administration brought home investments from Japan,” Jervin S. de Celis, equity trader at Timson Securities, Inc., said in a text message on Friday. – J.C. Lim

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