Shares snap winning run as investors pocket gains

Shares snap winning run as investors pocket gains

PHILIPPINE SHARES halted their winning run on Thursday as investors pocketed their profits from the rally while awaiting more trading drivers.

The benchmark Philippine Stock Exchange index (PSEi) slipped by 6.46 points or 0.09% to end at 6,673.50 on Thursday, while the broader all shares dropped by 3.25 points or 0.09% to close at 3,508.19.

“This Thursday, the local market inched down by 6.46 points to 6,673.50 as investors took profits after a three-day rally,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.

“The bourse seems to have a hard time as it nears the 6,700 resistance level, which may indicate that investors are not yet prepared to get past the said level as reflected by this session’s low net market value turnover…  Also, many are still waiting for a catalyst to emerge,” Mr. Plopenio added. 

Value turnover decreased to P4.88 billion on Thursday with 684.77 million issues switching hands from the P5.64 billion with 343.17 million shares seen the prior day.

The local bourse ended in negative territory as investors looked ahead to the release of fourth quarter and full-year 2023 US gross domestic product data overnight, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“The world’s largest economy is expected to show growth at a 2% seasonally adjusted annualized pace. That will reflect a slowing from the 4.9% reading in third quarter of 2023. The results could be a key catalyst for stocks as investors try to glean details on the state of the economy heading into the new year,” Mr. Limlingan said. 

The majority of sectoral indices closed lower on Thursday. Mining and oil went down by 89.88 points or 0.96% to 9,200.41; services retreated by 4.96 points or 0.3% to 1,621.45; holding firms dropped by 18.31 points or 0.28% to 6,352.02; and property declined by 8.14 points or 0.27% to 2,906.88.

On the other hand, industrials rose by 26.97 points or 0.29% to 9,149.35, and financials climbed by 1.33 points or 0.07% to end at 1,885.48.

“Among the index members, Bloomberry Resorts Corp. was at the top, climbing 5.95% to P11.40. International Container Terminal Services, Inc. lost the most, dropping 2.03% to P241,” Mr. Plopenio said. 

Decliners outnumbered advancers, 105 versus 67, while 51 names ended unchanged.

Net foreign buying fell to P80.13 million on Thursday from the P341.09 million recorded on Wednesday.

“Immediate minor support levels are expected at the 6,400-6,510 levels, while immediate major support ranges from 6,215 to 6,310, which could help keep intact the underlying momentum seen over the past two months,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message. — R.M.D. Ochave