Investors scour for extras as PSEi ends 1.33% down

The benchmark Philippine Stock Exchange Index  (PSEi) saw a steep drop Friday, which an analyst attributed to continued profit-taking.

The PSEi closed the session down 1.33 percent, or 110.01 points, to 8,144.02. The broader all-shares index was also down 1.25 percent, or 60.77 points, to 4,785.86.

“This is purely profit-taking,” BDO Unibank Inc. chief strategist Jonathan Ravelas said on Friday.

He was referring to the string of good news, including the recent release of the stronger-than-forecast third quarter gross domestic product and the progress made in the government’s banner tax reform program.

Ravelas noted the PSEi still remained up 19 percent year-to-date, and that a correction was long overdue.

He added the PSEi breaching the 8,600 level last month was likely a “near-term top.” The close below 8,150 on Friday was also significant, meaning there was a risk for the PSEi to ease lower to the next key support level at 8,000, he said.

“This is where you get to see the bullish and the bearish investors in hand-to-hand combat,” Ravelas said.

Data from the PSE showed that all sub-indices closed in the red on Friday. Losers were led by property, down 1.52 percent, followed by holding firms, down 1.47 percent, and mining and oil, down 1.4 percent.

A total of 1.48 billion shares, valued at P9.74 billion, changed hands on Friday. A total of 59 companies gained while 134 declined and another 45 firms closed unchanged.

Ayala Land Inc. was the most actively traded on Friday, but it lost 1.4 percent to P42.20 per share.

The builder was followed by Manila Electric Co., down 3.05 percent to P305.40; BDO Unibank Inc., up 0.68 percent to P147; SM Investments Corp., down 0.72 percent to P963; and Globe Telecom, down 1.86 percent to P1,796 per share.