Philippine stocks dip anew on technical correction

PSE index as of July 11, 2012 03:46:00 PM

MANILA, Philippines—Local stocks tumbled for a fourth session on Wednesday as a technical correction continued after last week’s surge to record highs while concerns on global growth persisted.

The main-share Philippine Stock Exchange index shed 4.84 points, or 0.09 percent, to close at 5,235.44. A late surge in buying allowed the index to trim losses of over 30 points earlier in the session.

“This market is so buoyant. The money flow is still in our favor,” said Gus Cosio, president of First Metro Asset Management Inc., who explained the late-session buying binge.

Across the region, however, sentiment was sluggish on concerns that a global slowdown triggered by a likely recession in the European zone might gnaw at corporate profits.

The day’s decline was led by the mining/oil and property counters.

The mining/oil index fell by 2.61 percent as the market digested the impact of a new mining executive order issued by Malacañang.

Cosio said the EO was “very confusing” and thus benefited some mining firms but caused jitters on others.

On the other hand, the property counter was dragged down by ALI, whose share prices declined to catch up with the pricing of an overnight placement deal.

Value turnover amounted to P20.23 billion, which included a P13.6-billion block sale on ALI at P20 per share. ALI closed 1.9 percent lower at P20.65 per share.

There were 45 advancers, which were overwhelmed by 112 decliners, while 44 stocks were unchanged.

PLDT, SM Prime, URC, Megaworld, JG Summit, BPI and Belle also contributed to the index decline.

Other stocks that dipped in heavy volume were GSMI, Puregold and Lepanto.

On the other hand, gains eked out by ALI, Metrobank, AC, DMCI, BDO and RLC tempered the day’s index decline.