‘Failed breakout’ prompts investors to unload PH stocks, bringing down index by 111.45 points
The local stock barometer pulled back sharply on Tuesday as selling pressures intensified after what was seen as a “failed breakout” from the 8,000 barrier.
The main-share Philippine Stock Exchange index lost 111.45 points or 1.39 percent to close at 7,906.60, bucking the upswing in most other markets in the region.
This was a “failed breakout” as the PSEi wasn’t able to stay afloat the support level close to 8,000, said Joseph Roxas, president of Eagle Equities.
A failed breakout, he said, was usually a “very bad” signal for the market, suggesting downside risk that could reach 7,700, he said.
Last week, the PSEi hit a new intra-day high for the year at 8,106.74.
All counters tumbled, led by the property counter which slid by 2.24 percent. The industrial counter also fell by 1.2 percent.
Total value turnover for the day amounted to P6.18 billion. Foreign investors were net sellers amounting to P330.8 million.
There were 114 decliners that edged out 86 advancers while 48 stocks were unchanged.
The PSEi was weighed down most by URC and JG Summit, which both slid by over 4 percent while SM Prime also fell by 3 percent.
Investors also sold down shares of Ayala Land, PLDT and Security Bank, which all lost over 2 percent while Semirara, BDO, GT Capital and ICTSI all declined by over 1 percent.
DMCI, Metrobank, AGI and BPI also declined.
Outside of the PSEi, notable decliners included Cirtek, which fell by 3.44 percent.
On the other hand, Megaworld gained 1.04 percent while SM Investments also firmed up.