MANILA, Philippines–Philippine stocks were down for a third straight session on Wednesday, bucking positive sentiments elsewhere in the region where investors cheered stimulus efforts in China.
The benchmark Philippine Stock Exchange Index slid 0.23 percent, or 18.33 points, to 7,846.94 The broader all-shares index was also down 0.18 percent, or 8.09 points, to 4,486.08.
Bede Gomez, vice president at First Metro Investment Corp., said the decline comes as foreign funds have been rebalancing portfolios and placing more attention on regional laggards after recent stellar gains in the Philippines.
“We think the market has moved higher and earlier than expected,” Gomez said. “And as we hit those new peaks, valuations continue to move higher. This has probably warranted some rebalancing.”
Gomez, who said that FMIC was keeping its yearend target for the PSEi at around 8,300 to 8,500, said positive economic fundamentals were still intact.
“I think this is a correction that needs to happen, it gives investors a breather and takes some of the pressure out,” he said.
PSE data on Wednesday showed that a total of 1.04 billion shares changed hands, valued at P7.21 billion. A total of 77 companies gained while another 92 ended in the red. Another 52 companies closed unchanged, the data showed.
After days of net selling, foreigners were net buyers to the tune of P255.84 million on Tuesday.
Universal Robina Corp. led the list of most actively traded stocks as it gained 0.92 percent to P218.60 per share.
This was followed by BDO Unibank Inc., down 0.51 percent to P116.4, GT Capital Holdings Inc., down 1.05 percent to P1,230, Ayala Corp., down 1.28 percent to P770, and Metropolitan Bank and Trust, down 0.10 percent to P97.10 per share. —Miguel R. Camus