7,000 proving to be a big roadblock for an uninspired PSEi

The benchmark Philippine Stock Exchange Index (PSEi) saw a pullback on Wednesday as it approached the top of a narrow range identified by technical indicators.

By the closing bell, the PSEi sank 0.79 percent, or 54.74 points, to 6,901.91 while the broader all-shares index dropped 0.42 percent, or 17.79 points, to 4,244.58.

With the lack of major news, analysts were watching whether the PSEi would again breach the psychological 7,000 barrier.

BDO Unibank Inc. chief strategist Jonathan Ravelas noted that, earlier in the session, the benchmark measure’s level already indicated a “near-term top” at last week’s high of 7,001.21, and thus proving to be a headwind against any advance.

“Continue to expect the market to range between the 6,700-7,000 levels in the near-term,” Ravelas said.

Meanwhile, subsectors were mixed as industrial, services and mining and oil ended in positive territory. Property stocks led losers with a 1.75-percent decline, followed by financials and holding firms.

A total of 1.84 billion shares valued at P6.38 billion changed hands on Wednesday. Decliners outnumbered gainers, 109 to 94, while 47 companies closed unchanged.

Property giant Ayala Land Inc. was the most actively trade on Wednesday as it slid lower by 0.28 percent to P36.05 per share.

It was followed by Monde Nissin Corp., up 2.99 percent to P16.52; SM Prime Holdings Inc., down 3.18 percent to P36.50; International Container Terminal Services, up 1.11 percent to P163.70; and Emperador Inc., up 6.49 percent to P12.80 per share.