Philippine bourse dips on valuation concerns
MANILA, Philippines—The local stock index slightly dipped on Monday as investors reassessed stock valuations after a strong run-up that has catapulted the main index to unprecedented heights in the last two months.
The Philippine Stock Exchange index gave up 5.54 points, or 0.11 percent, to finish at 4,975.17 in mixed trade.
The market was weighed down by holding firms, services and mining/oil counters but overall losses were tempered by the most gains eked out by the financial, industrial and property counters.
“It’s been so active over the last two months and people have made some money. I think some people are taking money off the table, maybe going on big vacations for Holy week,” said Joseph Roxas, president of Eagle Equities Inc.
Historically, he said the local market would be weak closer to the ides of March during the run-up to the Lenten season.
Investment bank Credit Agricole CIB said caution was set to prevail despite positive economic news, noting that eurozone finance ministers were set to meet later on Monday to finalize the second Greek bailout program.
Value turnover amounted to P5.71 billion. Despite the overall decline, there were 80 advancers, which slightly edged out 76 decliners, which meant that investors were pocketing gains from some blue chips to scout for good buys among the second- and third-liners.
AEV, AGI, BDO, SMC, Philex and DMCI contributed to the PSEi’s decline.
On the other hand, overall index decline was mitigated by the gains of AP, Semirara, EDC, Megaworld, Metrobank, URC and SM Prime. Security Bank and Nickel Asia also benefited from selective buying on Monday.
