Investors step back from large cap stocks as PSEI drops below 7,400
The stock barometer slipped below the 7,400 level on Thursday as investors trimmed their exposure to overbought large-cap stocks.
The main-share Philippine Stock Exchange index (PSEi) shed 63.5 points or 0.85 percent to close at 7,387.87 as foreign selling resumed while value turnout remained tepid.
Based on technical readings, local stock brokerage Papa Securities said the PSEi had reached overbought levels in the past six days. With low value turnout, it noted that the resistance level at 7,500 would be a “tough nut to crack.”
The index was dragged down by the holding firm counter, which declined by 1.5 percent, while the financial, industrial, mining/oil and property counters also slipped.
The services counter ended a hairline higher.
Value turnover for the day was still thin at P3.7 billion. There was P580 million in net foreign selling.
Decliners edged out advancers 117 to 72, while 46 stocks were unchanged.
The PSEi was dragged down most by GT Capital, which tumbled by 4.13 percent, while Metro Pacific also lost 3.48 percent.
Ayala Corp. and LTG both slipped by over 2 percent, while SM Investments and SM Prime were down by over 1 percent.
Metrobank, ICTSI and AEV also faltered.
Notable decliners outside the PSEi included SSI, which pulled back by 6 percent after the previous day’s run-up when it announced a deal to bring New York-based food retailer Shake Shack to the Philippines.
Cosco and Pilipinas Shell also slightly slipped in relatively heavy volume.
On the other hand, URC and Meralco firmed up.
Non-PSEi stocks that had notable gains included Easycall, which surged by 18.6 percent. TBGI also surged by 5.88 percent, while Megawide rebounded by 1.18 percent.
