Stocks continue to weaken

The local stock barometer retreated for the third session in a row yesterday as steep stock prices and oil price pressures induced caution and profit-taking.

The main-share Philippine Stock Exchange index (PSEi) lost 53.52 points or 0.79 percent to close at 6,704.93.

“Valuation is still an issue. Market is still trading at close to 20x forward P/E (price-to-equity ratio). Oil price pressures and its consequences are an issue as well,” said Manny Lisbona, deputy chief at PNB Securities.

Across the region, trading was mixed as violence in Iraq escalated while Russia cut off gas supply to Ukraine over payment scheme disagreements.

At the local market, all counters were in the red but the most battered were the financial and property counters, which both fell more than 1 percent ahead of this week’s monetary setting by the Bangko Sentral ng Pilipinas. Some institutions expect the BSP to start increasing its overnight rate as early as this Thursday’s meeting.

Value turnover for the day amounted to P7.69 billion. There were 53 advancers, which were overwhelmed by 131 decliners, while 35 stocks were unchanged.

DMCI (-4.09 percent), Ayala Land Inc. (-3.19 percent) and BDO (-2.52 percent) led the PSEi’s decline while investors also sold down shares of Metrobank, Aboitiz Power and Energy Development Corp., which all lost more than 1 percent. Doris C. Dumlao