Bourse closes lower today on lack of positive developments

MANILA, Philippines (Xinhua) - The stock market opened today's session lower as investors remain on the lookout for leads to beef up their portfolio.

The bellwether Philippine Stock Exchange index lost 0.15 percent or 10.16 points to 6,780.26, while the broader all-share index retreated by 0.08 percent or 3.23 points to 4,050.28.

Trading volume reached 1.18 billion shares worth P5.36 billion ($122.54 million) with 96 stocks declining, 72 advancing, and 46 unchanged.

Three of the six counters bucked the trend. These include financials, services, and mining and oil sector.

Joyce Anne Ramos of AB Capital Securities, Inc. said in her stock market comment that the Philippine equities is following trends in the US and neighboring Asian markets.

"This week's market played trading tug-of-wars. With the lack of any major leads for both domestic earlier this week, the Philippine market followed the trends in the US and neighboring Asian markets, pushing its way to retest the 6,900 level last today," she said.

Ramos however added that the market had been on an uptrend for the past few weeks and the long overdue correction was inevitable.

Moreover, the official start of the World Economic Forum and the positive Federal Open Market Committee minutes helped boost last week's rally, although the bears continued taking over the bulls on Friday, pulling down share prices and erasing the previous day's gains.

Technical indicators further point out that the two failed attempts to breach the 6,900 level coupled with the fact that the index is reaching the oversold levels have affected the local equities.

"For this week, we expect weaker momentum as investors may take the side lines in anticipation of the upcoming gross domestic product (GDP) data," Ramos said.

The analyst said the best case scenario that can boost the market is a better-than-expected GDP result, which could push the PSEi back to retest the 6,900 level.    

For now, Ramos said investors should expect the market to move sideways.

Stocks in the 30-company index closed mixed. Investors sold down heavyweight Philippine Long Distance Telephone Co., SM Investments Corp., and Ayala Corp.