Photo from pse.com.ph
MANILA, Philippines—The local stock market retreated from record highs on Friday as investor sentiment was dampened by the suspension of Bacman geothermal operations while weak regional markets also spurred profit-taking.
The main-share Philippine Stock Exchange index shed 79.18 points or 1.18 percent to close at 6,642.27. The benchmark index fell by 0.35 percent for the week.
“It’s the first weekly loss in nine weeks on profit-taking,” BDO chief strategist Jonathan Ravelas said. “A break below 6,560 will signal a much larger correction towards 6,400 levels.”
Turnover amounted to P10.93 billion.
There were 72 advancers against 93 decliners while 45 stocks were unchanged.
Weak data on Chinese manufacturing also resulted in sluggish trading across the region.
At the local market, Lopez-led index stocks EDC (-11.35 percent) and FGEN (-7.98 percent) dragged down the index as investors sold down these stocks following the disclosure that EDC had suspended operations at its Bacman geothermal plants. Non-PSEi stock FPH (-6.95 percent) also fell in heavy trade.
“EDC’s Bacman below a turbine.This could set it back another year. This may not be a buy opportunity,” said fund manager Gus Cosio, president of First Metro Asset Management Inc.
After a sharp rise on Thursday, BDO plunged by 6.52 percent. Selling on SMDC, Megaworld, Belle,Philex, SMIC, SMC, ALI also dragged down the index.
On the other hand, the day’s decline was tempered by the sharp gains eked out by Metrobank (+3.51 percent) and RLC (+3.3 percent). DMCI, Globe, MPI, AGI, Semirara, BPI, AEV and Meralco also gained.
The day’s most actively traded stock was Bloomberry (+4.19 percent), which gained on news that this gaming stock will join the PSEi replacing SMDC by March 11.