Main-share index pulls back from 10-month high, closes below 8,000

The local stock barometer slipped below the 8,000 mark on Tuesday as companies neared “overbought” levels against the backdrop of mostly sluggish regional markets.

The main-share Philippine Stock Exchange index shed 48.26 points or 0.6 percent to close at 7,953.12, pulling back from a 10-month high.

Leading online stock brokerage COL Financial said the next resistance levels for the market would be at 8,118 and 8,136.

“Can this resistance band be overcome? Well yes, it is possible, but the PSEi is nearing overbought levels in both daily and weekly chart readings which means it may not have enough lasting power to keep it hoisted above this range unless a preparatory pattern (new windup) can be made,” COL said in a research note.

Nonetheless, COL said a large ascending formation indicated a bullish formation that had been winding up for a little over two years and now looking “quite ripe for an eventual major breakout.”

“The question only remains if it requires one more pullback into the short-term before it takes into a pitch, but the outlook is getting quite rosy,” it said.

“The local market took a breather after reaching a high for the year. It was also tracking US stocks closing marginally lower as investors turned cautious ahead of a week packed with former FBI (Federal Bureau of Investigation) director James Comey’s testimony, the U.K. election, and the ECB (European Central Bank) monetary-policy meeting,” said Luis Gerardo Limlingan, managing director at Regina Capital Development. “Other data kept funds on the sidelines.”

Except for the services counter which ended a tad higher, all counters declined at the local market on Tuesday.

Value turnover for the day amounted to P8.18 billion. There were 116 decliners that edged out 82 advancers while 47 stocks were unchanged.

Investors dumped shares of AGI, which fell by 4.05 percent. AGI is a key shareholder of Travellers International Hotel Group, developer and operator of Resorts World Manila whose operations remain suspended following a gunman’s rampage last Friday.

MPI also fell by 2.36 percent while Ayala Corp., SM Investments, BPI and SM Prime all slipped by over 1 percent.

Ayala Land, URC, GT Capital and BDO also declined.

On the other hand, Megaworld rose by 1.09 percent while DMCI also gained 1.29 percent following reports that it will enter the cement business.

ICTSI, PLDT, Semirara and Globe also gained.

Outside of the PSEi, notable gainers included IMI, which surged by 9.49 percent.

Newly listed Cebu Landmasters also gained 4.41 percent.