PSEI slips to 8700 level in global markets

Ram Christian Agustin and Marianne Ilumba | January 30, 2018

Photo from Philstar.com

The Philippine Stock Exchange index (PSEi) fell by over 2 percent in intraday trade on Tuesday saw a second day of bloodbath on Wednesday as weak investor sentiment arising from a global bond sell-off induced more profit-taking.

“It looks like the index’ decline was led by funds taking profits after the PSEi had reached high levels above 9,000,” Papa Securities said in a research note on Wednesday.

“Obviously the bears were able to win out today,” Philstocks Financial, Inc. Research Head Justino Calaycay Jr. said.

“What aggravated the situation was a number of bad news such as the government debt and the possible trade war between US and EU … other markets also reacted the same day,” he added.

“This was also part of the window-dressing move as some funds sold out of overpriced issues and switched to others,” a Regina Capital Development Corp. analyst pointed out.

The PSEi was at a disadvantage most by the holding and property firms, which both tumbled by over 2 percent along with financial, industrial and mining/oil counters which slipped. Only the services counter stayed resilient with no deficit recorded.

More than 2.38 billion issues valued at P10 billion were traded.

Losers led winners, 151 to 58, while 55 issues remained constant.