03/12/2009 | 12:25 PM
(Update) MANILA, Philippines - Local stocks tumbled across the board except for the mining and oil index as investors dumped shares on latest data that the Japanese economy in the last quarter fell to a 34-year low.
The bellwether Philippine Stock Exchange (PSEi) gave up 1.14 percent or 21.75 points to close at its weakest level in two days at 1,879.67.
Trading was lethargic as volume of shares traded went down to 790.57 million amounting to P1.25 billion from 1.675 billion valued at P1.77 billion.
The mining and oil index shot up by 1.24 percent of 45.01 points to close at 3,678.09. Market breadth was negative as there were 51 losers against 25 gainers and 47 issues unchanged.
The local stock market faltered from its one-day recovery, tracking its regional counterparts.
The top four actively traded stocks that cornered 51.57 percent of the trading all fell, led by telecom giant Philippine Long Distance Telephone Co.
"The local bourse has failed to sustain in the upbeat market mood, thus ending hopes of even a short streak of rally for the week," Unicapital Securities Inc. said.
Investors appeared to have ignored Moody's Investors Service possible upgrade of PLDT’s local currency issuer rating as shares lost P10 to close at P2,270.
Lopez-led First Philippine Holdings Corp. slipped by 5.56 percent at P25.50 while Energy Development Corp. and Ayala Land, Inc. ended weaker at P3 and P5, respectively.
The broader all shares dipped by 0.88 percent or 10.61 points to 1,198.29. The property index posted highest losses, giving up 3.23 percent or 17.29 points to close at 518.64. The financial index trimmed off 1.77 percent or 6.97 points to 385.95.
The service index ended weaker by 0.37 percent or 4.46 points to 1,201.26 along with the holding firm index, which declined by 0.91 percent or 7.91 points to 863.54. The industrial index gave up 0.98 percent or 25.22 points at 2,555.81.
"We do not expect a sustained rally in regional markets as we think fundamentals are still shaky. Weakening demand should continue to put pressure on corporate earnings and we believe economic growth rates are yet to bottom out," UBS said.
True enough, the revised fourth quarter Japanese economy fanned fears among investors as the figure is worse at 12.1 percent than the 12.7 percent announced earlier.
This followed the Wall Street gains on the statement of Citigroup chief executive Vikram Pandit that the beleaguered banking giant was profitable in the first two months.
In its research note, stock portal 2TradeAsia.com expected Thursday's trading to move sideways as "some investors seize on the recent advance to possibly lock-in short-term trading gains."
"This runs in tandem with the volume turnout at the foreign exchange market, having hit above $1 billion per day since middle of last week. Meanwhile, there might still be a handful of large-cap stocks that could keep the market aloft, especially those within services & utility categories. Spot for weakness to re-position and review return expectations. Immediate support is 1,890, resistance at 1,930," it said.
Consunji-led DMCI Holdings, Inc. and Philex Mining Corp. bucked the trend, gaining at P2.90 and P5.90, respectively. - GMANews.TV
*The storm is headed this way, whether you like it or not, markets move upwards, downwards, and side-ways. It would be naive to think that the stock market will continue to thrive in the coming year, commodity investing will be bullish in the coming years.
true... the next two years at least will be very challenging for the stock market.... Pinoy Money Talk has a good forum that can help us weather this financial storm.
ReplyDelete~the earning student