The bellwether Philippine Stock Exchange index lost 0.74 percent or 32.43 points to 4,340.27. The broader all-share index retreated by 0.68 percent or 20.91 points to 3,035.38.
Trading volume reached 5.17 billion shares worth 6.59 billion pesos (155.28 million U.S. dollars) with 102 stocks tumbling, 44 advancing, and 36 unchanged.
All six counters closed lower, with the mining and oil sector falling by 3.59 percent. "Profit taking set in (on Wednesday) as investors took their cue of the correction in U.S. stocks overnight," brokerage DBP-Daiwa Securities, Inc. said.
The unresolved debt issue in Europe sent the Dow Jones industrial average index retreating by 0.67 percent or 76.97 points on Tuesday, ending its three-day rally.
"Developments abroad such as the recent proposal to introduce financial transaction tax in Europe, which could hamper trading activities and limit additional income for banks, may force investors to cut their exposures in volatile instruments such as stocks while the rest of Europe's leaders formulate policies and programs that aims to save member countries from the drastic effects of a debt dilemma and economic slowdown," the brokerage said.
DBP-Daiwa Securities, Inc. said bargain hunting because of the earning season is also starting to ease since most big companies have already disclosed their profits.
Analyst Justino Calaycay of Accord Capital Equities Corp. said the local equities' action on Wednesday "fell within the expectations."
He said he expects the market to continue its performance for the rest of the week as investors monitor developments overseas.
Most stocks in the 30-company index closed lower. Megaworld Corp., Banco de Oro Unibank, Inc. and San Miguel Corp. shed their value.
No comments:
Post a Comment