PSEi dips from record high
THE LOCAL stock barometer slipped from record highs on Monday as regional jitters on US interest rates added to profit-taking pressures.
The Philippine Stock Exchange index lost 41.04 points or 0.52 percent to close at 7,820.29. Elsewhere in the region, trading was sluggish as investors feared that stronger-than-expected US jobs data may prompt the US Federal Reserve to hike interest rates sooner than originally priced in by the market.
The decline was led by the property and mining/oil counters which both fell by over 1 percent. The industrial, holding firm and services counters ended slightly lower. On the other hand, the financial sub-index eked out a modest gain.
Value turnover for the day amounted to P8.33 billion. Market breadth was negative, with 69 advancers overwhelmed by 112 decliners while 47 stocks were unchanged.
The PSEi was weighed down most by gaming firm Bloomberry (-3.08 percent) and infrastructure holding firm MPIC (-2.08 percent).
Water utility Manila Water, although not part of the PSEi, slumped by 3.77 percent as the market braced for an unfavorable arbitration ruling on water tariffs. MPIC, which has another water concessionaire Maynilad in its portfolio, is likewise reeling from delay in regulators’ implementation of tariff hikes despite having obtained a favorable arbitration ruling earlier. Maynilad and MWC had brought to separate arbitration panels the water tariff dispute with the regulators.
EDC, Semirara, ALI, GT Capital and Jollibee lost over 1 percent. Metrobank, PLDT and Megaworld also faltered.
On the other hand, AGI gained 1.46 percent while URC, BDO, BPI and SMIC also posted modest gains. Outside of the PSEi, Security Bank shares gained by 1.13 percent.
Local stock brokerage AB Capital Securities said outlook for the week was slightly bearish now that the index had approached previous intra-day highs. “As such, investors are advised to remain cautious while continuing to accumulate on dips,” the brokerage said.
Key resistance level for the index was seen at 7,862 to 7,865. A breach above this level, the brokerage said, would open the way for further upside up to 7,900. Meanwhile, it said support levels could be found at 7,720 and 7,650.
Trading range for this week is expected at 7,720 to 7,900, AB Capital said.
