Philippine market retreats for 3rd straight session

MANILA, Philippines—The local stock market slumped for a third session on Monday, tracking a global equities correction that followed a recent run-up.

The main-share Philippine Stock Exchange index shed 7.57 points, or 0.14 percent, to close at 5,424.79 but still close to all-time high levels.

The PSEi’s highest closing level was 5,443.74 on October 4 while intraday peak was at 5,484.63 on October 5.

All counters declined except for the mining/oil counter, which modestly gained.

The index was weighed down by PLDT, SMIC, SM Prime, Globe, Megaworld, Metrobank, AGI, BPI and EDC.

The PSEi’s losses were tempered by the gains of ALI, AC, URC and FGen.

Investors also turned to non-index stocks for trading opportunities as many blue chips were perceived to have hit rich valuations. APM (+6.06 percent) and Pepsi PH (+3.15 percent) gained in heavy volume.

Likewise, among the day’s outperformers were MJIC (+35.54 percent), Mariwasa (+18.75 percent), Asia Amalgamated (+18.4 percent) and AMC (+15.83 percent).

MJIC surged on news that a group of investors has offered to infuse P2.2 billion to acquire 70 percent of the company.

Mariwasa, on the other hand, is undertaking a capital restructuring to wipe out its deficits.

Metrobank, in its daily research, noted that US equities got slammed on Friday and suffered their worst day since June, as stocks slipped on disappointing earnings and as the Euro summit failed to discuss further aid for Spain. The Dow Jones Industrial Index fell by 1.52 percent, or 205.43 points, thus dragging down regional markets on Monday.

“While caution is warranted, being buyers on dips is preferred, positioning ahead of third-quarter earnings results,” Metrobank said.