The benchmark Philippine Stock Exchange Index (PSEi) closed lower on Monday due to what an analyst described as a healthy correction after last week’s gains.
By the end of trading on Monday, the PSEi was down 0.74 percent or 51.83 points to 6,918.05 while the broader all shares index was down 0.25 percent, or 10.18 points, to 4,073.37.
Chris Mangun, research head at stock brokerage firm AAA Equities, said the drop was expected after the “massive rally that we saw at the end of last week.”
“This pullback is extremely beneficial for the market’s uptrend as it relieves pressure,” he said in a note to investors on Monday.
“It may continue even lower in the coming sessions to test support at 6,700. Investors are still confident in our market evident in the above average trading volumes that we are seeing,” he added.
The financial and industrial subsectors managed to close in positive territory despite the correction. Property and mining and oil were the biggest losers after dropping 1.4 percent and 1.69 percent, respectively.
A total of 2.4 billion shares valued at P8.77 billion changed hands on Monday. There were 119 gainers versus 109 decliners while 30 companies closed unchanged.
According to the PSE, Bank of the Philippine Islands was the most actively traded as it rose 1.59 percent to P83 per share.
It was followed by SM Prime Holdings Inc., down 2.45 percent to P37.80; Ayala Land Inc., down 1.01 percent to P39.10; BDO Unibank Inc., down 0.43 percent to P92.60 and SM Investments Corp., down 1.46 percent to P1,015 per share. —MIGUEL R. CAMUS INQ