The benchmark Philippine Stock Exchange (PSEi) saw a “healthy pullback” on Monday as it prepares for another leg up in the coming weeks on more positive economic prospects.
On Monday, the PSEi dropped 1.07 percent, or 78.07 points, to 7,211.54 while the broader all-shares index shed 0.58 percent, or 25.86 points, to 4,436.84.
Astro del Castillo, managing director of First Grade Finance Inc., said the market correction was expected after the recent run up.
“I think this is a nice pause for the market before the next run since good news is expected in the coming weeks,” he said in an interview on Monday.
Del Castillo said investors were looking forward to the economy further reopening and increasing COVID-19 vaccinations, which could set the stage for a healthy rebound in consumer spending in time for the Christmas season.
He also cautioned that despite relatively high valuations for local companies, better earnings could improve their price outlook moving forward.
Stronger economy
“People are betting on a stronger economy in the next six months,” he said.
Subsectors on Monday were weighed down by property, holding firms, mining and oil and industrial while financials and services rose.
Data from the PSE showed 913.57 million shares valued at P5.57 billion changing hands.
The decline during the session was also tempered by foreign buying, with their net purchase reaching P79.74 million.
A total of 120 companies closed lower against 75 gainers, while 55 firms closed unchanged.
Ayala Land Inc. was the most actively traded on Monday as it sank 4.4 percent to P35.85 per share.
It was followed by AC Energy Corp., up 2.9 percent to P11.36; SM Prime Holdings Inc., down 1.38 percent to P35.85; Converge ICT Solutions, up 3.88 percent to P32.10; and Universal Robina Corp., down 2.36 percent to P136.70 per share.
Other actively traded stocks were BDO Unibank Inc., up 0.78 percent to P129; International Container Terminal Services, up 0.22 percent to P183.40; Globe Telecom, down 0.59 percent to P3,020; Monde Nissin Corp., up 0.25 percent to P16.24; and LT Group Inc., unchanged at P10.22 per share. INQ