Index tumbles on lack of positive leads

MANILA, Philippines - The bellwether index tumbled yesterday as selling persisted for the second straight day due to a lack of positive leads.

The Philippine Stock Exchange index (PSEi) retreated 1.2 percent or 74.27 points to 6,105.23, while the broader all shares index declined 0.88 percent or 33.21 points to 3,733.61.

“Unable to get new positive leads, a flood of red greeted the second day of trading for December with the PSEi testing the 6,100 support line,” said Justino Calaycay Jr., an analyst at Accord Capital Equities Corp.

“The direction seemed definite from the get-go, despite a marginal three-point slide at the opening bell. It has headed downhill since,” Calaycay said.

Markets abroad were also in the red, unable to buoy investor sentiment.

“As more and more encouraging economic data comes out, the ante on tapering increases and markets will become jittery, more than they already are,” Calaycay said.

Calaycay said valuations have also come into play as most indices have touched multi-month highs.

Locally, all counters were in the red, paced by heavy selling in the property sector that retreated 1.73 percent or 41.54 points to 2,357.57.

Investor participation remained thin at P5.42 billion from P5.19 billion on Monday. Decliners beat advancers 84 to 58, while 34 stocks did not change.

Most active stocks posted losses, led by SM Investments Corp. (-0.55 percent), PLDT (-1.39 percent) and Ayala Land Inc. (-4.29 percent). But GT Capital Holdings (+1.32 percent) and Travellers International Hotel Group Inc. (+3.17 percent) bucked the trend.

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