The local stock barometer slipped below the 8,000 mark on Wednesday as investors shied away from pricey large-cap stocks.
The main-share Philippine Stock Exchange index shed 17.18 points or 0.21 percent to close at 7,998.75, weighed down by about P327.87 million in net foreign selling.
Elsewhere in the region, trading sentiment was mixed.
At the local market, the financial and holding firm counters dragged the main index while the industrial, services, mining/oil and property firms eked out modest gains.
Value turnover was thin at P5.7 billion. It was the second trading day of the so-called “ghost month,” the seventh Lunar month when many Chinese investors avoid making big investments.
Despite the PSEi’s drop, however, market breadth was positive, indicating that investors were still gobbling up stocks which are not part of the main index.
There were 99 advancers that edged out 88 decliners while 59 stocks were unchanged.
Metro Pacific fell by 1.19 percent while ICTSI, GT Capital, BDO, SM Investments, Jollibee, Ayala Land, Ayala Corp., DMCI and Security Bank also dipped.
On the other hand, property stocks SM Prime and Megaworld both gained over 1 percent.
The day’s notable gainers, however, are not PSEi stocks but mostly second-liner stocks. Nickel Asia surged by 6.16 percent while Cemex and D&L both gained over 4 percent. Gaming firm Bloomberry rose by 1.58 percent.
With the index nearing all-time highs but struggling to stay afloat the 8,000 mark, many investors are opting to pocket recent gains and stay on the sidelines. The market has been trying to break out of the 8,000 resistance in the last three years.
By this time, the market has digested the second quarter local corporate results and is awaiting fresh catalysts. Many are looking forward to the legislation of the first phase of the comprehensive tax reform program.