Index takes sharp plunge after record-breaking runs
Share prices closed 2.5 percent lower yesterday on a sell-off following six consecutive sessions of record-breaking runs, dealers said.
They said the market was taking a breather after gaining 8.4 percent since last week with some investors cashing in on gains.
The composite index fell 97.50 points to 3,776, after moving between 3,773 and 3,873.50.
Losers swamped gainers 85 to 41, while 42 stocks ended flat.
A total of 3.3 billion shares worth P4.1 billion changed hands.
The market gained 8.4 percent in the last six sessions, buoyed by an upbeat outlook on the domestic economy, a reduction in Philippine interest rates, easing concerns about the
“No sector was spared as the market corrected the excessive exuberance in the last couple of trading sessions when we were outperforming other markets in the region,” said Jose Vistan of AB Capital Securities.
“Yesterday’s run-up was too much. The market is now looking for a more stable level from which it will move up,” said Lawrence de Leon at Accord Capital Equities.
Most analysts believe the market will resume its rally once the third-quarter corporate earnings reporting season begins.
“With our strong economic fundamentals, the market is still in pretty good shape,” said Gomer Tan at Regina Capital Development Corp.
“The market could hit a resistance level of 3,800 and possibly the 4,000 mark before the end of the year, that’s a very strong possibility,” he said.
Philippine Long Distance Telephone Co. (PLDT), the nation’s biggest company by market value, slipped P95 to P3,170, after posting a record 3,285 Monday.
PLDT rival Globe Telecom Inc., the telecommunications unit of conglomerate Ayala Corp., shed P30 to P1,640.
Ayala Corp. declined P20 to P560. Its banking arm, Bank of the Philippine Islands lost P1.50 to P70.
Food and beverage conglomerate San Miguel Corp.’s A shares were down 50 centavos at P62, while its B shares lost P1.50 to P63. — AFP
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