PSEi retreats from record highs

THE local stock barometer retreated from record highs on Thursday as US Federal Reserve jitters and profit-taking pressures overshadowed the upbeat fourth quarter Philippine economic data.

The Philippine Stock Exchange index (PSEi) hit a record intra-day peak of 7,736.97 before succumbing to profit-taking. At the end of the day, the PSEi lost 43.88 points or 0.57 percent to close at 7,617.30.

The index had risen to all-time highs in the last four trading sessions. It carved a new intra-day high after the government reported a 6.9-percent gross domestic product growth rate in the fourth quarter of 2014, which was better than market consensus. However, profit-taking pressures escalated in the afternoon session.

Local stock brokerage DA Market Securities said while it continued to have a long-term positive view on local equities, the market was susceptible to profit-taking considering the “generous” year-to-date rally of 6 percent in January alone.

Across the region, stock markets were likewise mostly lower on Thursday as the market perceived the US Federal Reserve as inevitably hawkish or hell-bent on monetary tightening this year.

At the local market, the day’s decline was led by the interest rate-sensitive property counter which faltered by 1.56 percent. Only the financial counter was up, albeit at a very modest pace. Value turnover amounted to P10.17 billion.

Market breadth was negative, as 68 advancers were edged out by 114 decliners.

The PSEi was led lower by MPIC and EDC, which both tumbled by over 3 percent, while SM Prime and AP both fell by over 2 percent. FGEN and ICTSI also declined by over 1 percent.

PLDT, ALI, Metrobank, Megaworld likewise contributed to the decline.

Jollibee was among those that bucked the day’s downturn, rising by 3.12 percent. SMIC and GTCAP also firmed up by over 1 percent.

Outside of PSEi stocks, one notable gainer was FNI, which surged by 6.29 percent. It was the day’s most actively traded company.

Max’s likewise jumped by 6.48 percent. Banking stocks Security Bank and PNB were respectively higher by 3.01 percent and 2.5 percent.

Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of INQUIRER.net. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.

To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.

Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:

c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City,Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94

seo tools