Philippine stocks edge lower

MANILA, Philippines—Local stocks dipped on Wednesday alongside cautious regional markets as jitters over fiscal woes in Europe prevailed over upbeat US retail sales data.

The main-share Philippine Stock Exchange index shed 22.11 points, or 0.51 percent, to finish at 4,341.62.

The decline was led by the financial counter which slid by 2.4 percent.  The holding firms, property and services counters also traded in the red.

But the day’s downturn was tempered by the 1.18-percent gain by the industrial sub-index. The mining/oil counter also firmed up on the back of gains of Lepanto.

Value turnover amounted to P7 billion. There were 57 advancers, which were outnumbered by 94 decliners while 47 stocks were unchanged.

The PSEi’s decline was tempered by the gains eked out by SMC, ICTSI and URC.

SMC shares were up by 4.4 percent while ICTSI and URC shares also gained by 4.88 percent and 8.35 percent, respectively. Lepanto A (for local investors) and B (for all investors) also surged by 5.97 percent and 2.38 percent, respectively.

Stocks of Puregold also gained as the newly listed retailing firm reported strong nine-month profits.

On the other hand, there was profit-taking on Metrobank, SM Investments, Metro Pacific, AGI, PLDT, BPI, Megaworld, Philex, First Gen, ALI and Semirara.  Nihao likewise closed lower.

“Though the market does get shaken from time to time as news overseas gets discounted, the spate of positive developments (albeit still given a slightly negative spin) and the resiliency of the country’s economic numbers will keep equity prices relatively stable,” said Justino Calaycay Jr., a dealer at Accord Capital Equities Corp.

“Everyone is keeping fingers crossed, biased towards a positive outcome in Europe. Nevertheless, the prospects of a wrong turn keep exposure to equities limited, at best. A good number are still opting to stay liquid waiting for a wider clearing in the forest,” Calaycay said.

He said the market would likely continue to move inside the 4,330-4,370 trading band, with the major barriers at 4,270 and 4,400.

Wall Street sentiment on Tuesday was modestly higher, partly aided by news about an increase in US retail sales for the fifth straight month. The growth of 0.5 percent was a faster pace than expected by economists, boosting hopes that the US could avoid a double-dip recession.

Dealers said local investors might have anticipated a potential decline in US stocks in the next session as the Dow Jones Industrial index futures index was in the red before the local bourse closed this session.