PSEi back to doldrums

The local stock barometer returned to the doldrums on Tuesday, tracking mostly sluggish regional markets.

The main-share Philippine Stock Exchange index lost 25.26 points or 0.32 percent to close at 7,860.77.

“Philippine markets ended in negative territory with investors focusing on developments locally and within Asia while the US was closed for holiday. In addition, funds were switching between specific issues in order to clean up portfolios ahead of the month-end window dressing,” said Luis Gerardo Limlingan, managing director at Regina Capital Development.

At the local market, the financial, industrial, holding firm, mining/oil and property counters all slipped. Only the services counter eked out a modest gain.

Total value turnover for the day amounted to P7.39 billion. Despite the day’s decline, there was net foreign buying in the market amounting to P572 million.

There were 105 decliners that edged out 77 advancers while 58 stocks were unchanged.

The PSEi was weighed down most by Ayala Land, AP, Megaworld and MPI which all slumped by over 1 percent.
URC and SM Investments also declined.

Outside of the PSEi, the companies that declined in relatively heavy trade were: D&L Industries (-1.42 percent); Bloomberry (-2.8 percent) and Pilipinas Shell (-0.23 percent).

On the other hand, Petron and Globe both gained over 2 percent. AC and PLDT both slightly went up.

Other notable advancers outside the PSEi included newly listed companies Wilcon (+5.36 percent) and Eagle Cement (+1.7 percent).

On a technical analysis view, Limlingan said volatility was seen to be declining for this week but nevertheless still considered to be at higher levels compared to historical figures.

Meanwhile, he said stochastics were about to go up, “confirming a potential bullish indication.” On the other hand, he noted that moving average convergence-divergence seemed to be maintaining its trend, with no further signs of a bullish cross albeit volume was still picking up.

“We expect the index to make some corrections but still hover above the 7,800 level. If this continues, this will become a new base for us to reach 8,000 in the near term,” he said.