Philippine Stock Exchange index (PSEi) slipped july 26 2011

Indonesia stock info - Philippine Stock Exchange index (PSEi) slipped july 26 2011 ; TENSION OVER the still-unresolved US debt cap crisis strained the local bourse, pushing it to close lower yesterday, as President Benigno S. C. Aquino III’s State of the Nation Address (SONA) failed to lift investors’ sentiment.

The Philippine Stock Exchange index (PSEi) slipped by 0.33% or 14.63 points to 4,465.87, while the broader all-share index slid by 0.18% or 5.67 points to 3,098.55.

“The drop in the Dow Jones definitely affected the market. The SONA hardly made an impact,” said Joseph Y. Roxas, president of brokerage firm Eagle Equities, Inc., in a telephone interview yesterday.

Mr. Roxas said window-dressing leading up to Mr. Aquino’s SONA was the cue to yesterday’s profit taking.

Window-dressing refers to the strategy of improving portfolio appearance by selling lagging stocks and buying outperforming ones.

US markets fell overnight with Washington still unable to make Republicans and Democrats agree on a higher borrowing limit, even as an Aug. 2 deadline to do so closed in.

Blue-chip Dow Jones industrial average was down by 0.7% or 88.36 points. The broader Standard & Poor’s 500 index and tech-rich Nasdaq composite index also closed lower respectively by 0.56% or 7.59 points to 1,337.43 and 0.56% or 16.03 points to 2,842.80.

“As the world awaited the unfolding of the debt situation of the US, the local stock market was flat for another day,” wrote Prince Anthony A. Yeung, analyst at brokerage firm AB Capital Securities, Inc., in a market report yesterday.

“Investors were picky with their moves as index issues that were down [Monday] recovered [yesterday] and those that were higher [Monday] retreated [yesterday].”

Distribution utility Manila Electric Co. (Meralco), for instance, reported a 26% income growth to P6.09 billion in the first half but fell by 0.72% or P2 to P276 yesterday.

“A higher average distribution charge and lower operating costs enabled the huge increase in profitability despite the drop in volume,” Mr. Yeung noted.

Property firm Megaworld Corp., on the other hand, advanced by 0.46% or one centavo to P2.14 after announcing its latest P25-billion business process outsourcing project in Fort Bonifacio, Taguig City.

Mining and oil firms and service firms, meanwhile, bucked the general market’s decline, the former gaining 0.47% or 106.43 points to 22,620.84, and the latter adding 0.47% or 7.39 points to 1,580.04.

Holdings firms declined by 0.77% or 27.75 points to 3,567.80, followed by industrial firms that dropped by 0.50% or 38.20 points to 7,535.98.

The financial and property sectors shed 0.27% or 2.77 points to 1,012.62, and 0.26% or 4.06 points to 1,577.03, respectively.

Index heavyweight Philippine Long Distance Telephone Co. climbed by 0.25% or P6 to P2,398.

Geothermal energy producer Energy Development Corp. also climbed by 0.74% or five centavos to P6.85.

Miner Semirara Mining Corp., on the other hand, fell by 0.17% or 40 centavos to P240.

Diversified conglomerate San Miguel Corp. also skidded by 0.85% or P1.10 to P127.90.

A total of 4.703 billion shares worth P4.311 billion changed hands, from 6.257 billion shares worth P4.316 billion.

Net foreign selling summed up to P166.08 million.

“Given that prices have been going up, expect more room for corrections in the days to come,” Mr. Roxas said.


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