PSEi pulls back from highs, settles at 7,452.81 as investors assess gains

MANILA, Philippines–The local stock barometer faltered for the second session in a row as investors reassessed gains after last week’s breakout to new highs.

The Philippine Stock Exchange index gave up 32.51 points or 0.43 percent to close at 7,452.81. The 7,500 mark was revisited in intra-day trade but profit-taking pressures led to the lower closing level.

Across the region, trading was mostly upbeat ahead of the release of China’s 2014 gross domestic product (GDP) growth report. Later in the day, it was announced that China’s GDP had expanded by 7.3 percent in the fourth quarter, resulting in a 7.4 percent growth for the whole of 2014 growth, the slowest since 1990.

At the local market, all counters ended in the red but mining/oil counter was the worst hit for the day, declining by 2.91 percent.

Value turnover amounted to P8.29 billion. There were 71 advancers that were eclipsed by 114 decliners while 39 stocks were unchanged.

The decline was led by AGI (-3.13 percent), DMCI (-2.36 percent) and AC (-1.27 percent). Metrobank, PLDT, SM Prime, EDC, URC, SMIC and JG Summit also declined for the day.

Outside of PSEi stocks, Nickel Asia (-7.05 percent) and Puregold (-2.41 percent) tumbled.

Those that bucked the downturn included MPIC, which gained by 3.8 percent while BDO, GT Capital and Bloomberry all rose by over 1 percent. ALI, Megaworld and Globe also firmed up.

One notable gainer outside of the PSEi was D&L (+4.3 percent).

Local stock brokerage DA Market said despite recent global market volatility, the PSEi had remained resilient after breaking out to fresh highs. Based on a relative strength index indicator, the brokerage said the market was approaching oversold territory while based on moving average convergence/divergence indicator, there continued to be a bullish cross over. It said the stately would be to buy selectively.

DA Market forecasts the PSEi to break into new highs and reach between 8,000 and 8,500 this year.