PSEi slips on profit-taking, US fiscal woes

PSE index as of 3:46 PM, September 24, 2013

MANILA, Philippines — The local stock market slipped on Tuesday as investors locked up gains and observed caution over the fiscal debate in the US.

The main-share Philippine Stock Exchange index shed 16.56 points or 0.26 percent to close at 6,461.38.

Turnover was thin at P6.6 billion.

There were 56 advancers against 83 decliners while 43 stocks were unchanged.

“We expect the market to continue to take profit at this stage. Most of the regional markets are also falling prey to profit-taking,” said Manny Cruz, chief strategist at Asiasec Equities Inc.

After the US Federal Reserve’s surprise decision to maintain its $85-billion monthly monetary stimulus, Cruz said the next battle that markets were bracing for would be the proposed increase in the US budget.

Last week, the US Congress agreed to fund the federal government through mid-December and curb funding for President Obama’s healthcare program. The House of Representatives is thus pitted against the Executive and the Senate.

“Whenever there’s uncertainty, people are opting to hold on to cash or take profit, so we expect the market to test 6,410,” Cruz said, adding that 6,330 may offer a stronger support.

The day’s biggest index laggers were URC (-3 percent), RLC (-2.78 percent) and LTG (-2.47 percent). Globe and AGI also fell by over 1 percent while PLDT, Megaworld, Bloomberry, Metrobank and MWC also ended lower.

On the other hand, SMC shares were up by 5.57 percent as the conglomerate entered discussions to sell its remaining stake in Meralco. Petron was likewise up by 1.74 percent.

Most gains eked out by EDC, BPI, GTCAP, Ayala, AP, DMCI and Philex also helped temper the PSEi’s decline.