Philippine stocks end lower, market confidence remains

16:45, July 19, 2010      

Email | Print | Subscribe | Comments | Forum 

The Philippine market lost 0.53 percent of its value on Monday but investors' confidence over the long-term prospect of the market remains intact.

The bellwether Philippine Stock Exchange index managed to recover some of the 30-point loss it made during the intra-day session to settle at 3,424.29 or just 18.39 points lower than Friday's close. The broader all-share index was also down by 9.24 points to 2,167.79, although three of the six subsector indices, namely the financial, holding firm and mining and oil sectors, closed higher.

A total of 1.14 billion shares were traded, valued at 2.38 billion pesos (51.41 million U.S. dollars). Foreign investors were net sellers with 80.52 million pesos (1.73 million U.S. dollars).

"The Philippine market continues to experience a small correction but support for the 3,400 level is obviously present," Elizabeth Abadillo, analyst of Angping and Associates Securities, Inc., said in an interview.

"The low trading volume suggested that while there were profit takers, there were no aggressive sellers in the market. It seems as if investors are waiting for something to happen," Abadillo said.

Market participants are waiting for Philippine President Benigno Aquino III's first state of the nation address (SONA) which will be delivered next week. Aquino is expected to present his more detailed economic agenda in Monday's SONA.

Abadillo said investors are optimistic of Aquino's presidency. Investors, she said, are closely monitoring the first 100 days of the new president and "so far his moves are favorable."

"The 3,400 level looks sustainable. The country's macroeconomic fundamentals are positive," Abadillo said.

But over the next sessions, Abadillo said she expects investors to continue profit taking albeit minimally in the absence of any local and overseas developments and given the market's high level.

The sharp decline in U.S. equities Friday, on reports of weak consumer confidence and lower-than-expected corporate results, also weighed in local stocks.

The Philippine index fell by as much as 30 points during mid- trading after some investors opted to book their gains before trimming down some of its losses at the final bell.

While the 261-point slide in the US market failed to significantly push down the Philippine market on Monday, Justino Calaycay of Accord Capital Equities Corp. said this will "raise the bar of pessimism."

"Concern over the pace of global recovery resurfaced after disappointing economic data from the U.S. Retail sales and Producer Price Index fell more than anticipated," he said.



  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • The graphics shows the launch procedures of the carrier rocket of Tiangong-1 space lab module, Long March-2FT1 on Sept. 29, 2011. (Xinhua/Lu Zhe)
  • Image taken from Beijing Aerospace Control Center shows a Long March-2FT1 carrier rocket loaded with Tiangong-1 unmanned space lab module blasting off from the launch pad at the Jiuquan Satellite Launch Center in northwest China's Gansu Province, Sept. 29, 2011. (Xinhua)
  • On Sept. 28, tourists travel around the Mingshashan Scenic Area in Dunhuang, Gansu province by camel. With the National Day vacation right around the corner, more and more tourists from home and abroad are going to Dunhuang. Riding on a camel, they travel in the desert to enjoy the cities rare form of natural scenery. (Xinhua/Zhang Weixian)
  • Chinese forest armed forces work together with forest firefighters on Sept. 28. (Xinhua/Chai Liren)
  • Photo taken on Sept. 29, 2011 shows strong wind blows trees in Sanya, south China's Hainan Province. Typhoon Nesat heads towards south China and is moving at an average wind speed of 20 km per hour toward the west coast of China's Guangdong Province. (Xinhua/Hou Jiansen)
  • A fallen tree is seen on a road in Qionghai, south China's Hainan Province, Sept. 29, 2011. Typhoon Nesat was predicted to land in Hainan later Thursday, bringing heavy rainfalls to the island. (Xinhua/Meng Zhongde)
Hot Forum Discussion