Philippine stocks continue to weaken

The benchmark Philippine Stock Exchange index (PSEi) dropped for a fifth straight session Thursday even as local corporations continued to report better results for the last three quarters on what analysts said were due to fears of a taper, or reduction of monetary stimulus by the US Federal Reserve.

The PSEi lost another 0.63 percent, or 40.81 points, to 6,436.49. The index has declined about 2.4 percent since Oct. 30. The broader all-shares index also dipped 0.39 percent, or 15.26 points, to 3,917.99 yesterday.

US companies have been reporting better-than-expected earnings this quarter, helping prop up stocks there. But improving conditions in the US means that investors will continue to worry about a taper by the Fed, BDO Unibank Inc. chief strategist Jonathan Ravelas said.

“It’s very difficult to sustain above the 6,500 level. Despite the recent run-up of good earnings, the taper story is still a major problem limiting an upside,” Ravelas said in an interview.

He added that PSEi falling below 6,500 means it could trek lower. “It now puts 6,350 at risk. If that holds, we might see that bounce again close to 6,500,” he added.

Data from the Philippine Stock Exchange showed that all sub-indices ended in the red yesterday, except for services, which gained 0.09 percent. Losses were led by mining and oil companies, which collectively dipped 1.25 percent, followed by financials, which declined 1.09 percent.

A total of 1.29 billion shares changed hands for P8.42 billion. Decliners again outnumbered advancers, 86 to 61, while 43 companies closed unchanged.

Leading the most active list was nickel mining firm Marcventures Holdings Inc., which jumped 6.21 percent to P3.59 a share. Miguel R. Camus