PSEi retreats below 7,000

The local stock barometer pulled back Tuesday as investors pocketed gains near the 7,000 mark while a higher-than-expected Philippine inflation rate for July also tempered risk-taking.

The Philippine Stock Exchange index (PSEi) lost 24.37 points or 0.35 percent to close at 6,974, weighed down most by the interest rate-sensitive property counter, which slumped by 1.09 percent. A discounted equity deal in Bloomberry likewise weighed down the main index.

Manny Cruz, chief strategist at Asiasec Equities, said trading was choppy and there was heavy selling pressure close to 7,000, a level retested in Monday’s intraday trading. At the same time, he noted the 4.9-percent Philippine inflation rate for July, a three-year high and higher than the consensus forecast of 4.6 percent.

“With valuation concerns plus interest rate (uptick), investors are trimming down gains,” Cruz said.

With 7,000 proving to be a tough resistance, Cruz said the PSEi might retrace 6,908. The next support level after this is 6,800, the market’s recent low.

“But there are many global funds still in a cash position,” Cruz said.

The financial, holding firm and services counters also slipped. The mining/oil counter bucked the day’s downturn (+1.35 percent).

Value turnover for the day amounted to P9.38 billion. Despite the decline in the main index, there were more advancers (89) than decliners (79) in the overall market.

Bloomberry shares fell by 4.68 percent following a share-sale transaction at a discount to Monday’s close. Ayala Land (-2.35 percent) was likewise among the day’s biggest decliners.

On the other hand, the day’s most actively traded stock PLDT gained 0.45 percent after first-semester results (core net profit rising by 2 percent) were reported on track with full-year guidance.  Doris C. Dumlao