Profit-taking weighed on the stock market, while the peso closed higher against the dollar as investors continued to wait for full-year economic growth results released on Thursday.
The Philippine Stock Exchange’s core index (PSEi) fell 28.18 points, or 0.40 percent, to 7,041.50, while the broader All Shares Index shed 4.77 points, or 0.13 percent, to 3 686.48.
Meanwhile, the peso appreciated by 10 and a half centavos to 54.435 pesos: $1.
“Investors … took profits at the last minute, dragging the exchange into the red,” notes Philstocks Financial Inc. The announcement was made by researcher Claire Alviar ahead of the release of fourth-quarter and full-year gross domestic growth data due on January 26.
“Despite the decline, the market still managed to stay above 7,000 levels,” Alviar added.
“For now, we are still looking at the 7000 to 7100 range as a resistance range for the market, while support is pegged at 6800.”
The net market value of 5.00 billion pesos was lower than last week’s average of 7.16 billion pesos, Alviar continued.
Regina Capital Development Corp. Managing director Louis Limlingan, meanwhile, said a disappointing start to the US reporting season and other signs of a slowdown in the world’s largest economy also pushed the local stock market lower.
Rizal Commercial Banking Corp. Chief Economist Michael Ricafort, for his part, said PSEi has corrected after global crude oil prices hit a new 1.5-month high amid China’s economic recovery.
The peso opened at 54.6 pesos: $1 and fluctuated between 54.39 and 54.64 pesos. Volume for the day was $1.052 billion compared to $1.24 billion on Monday.
On the stock market, all sectoral indices, except for industrial ones (+0.57%), closed in the red on Tuesday. Holding companies fell the most, down 0.70 percent.
Just under 1.96 billion shares were sold, worth 5.40 billion pesos.
Progressives outperformed those who fell, 103 to 89, while 48 remained unchanged.