Stocks extend retreat on lack of distinct trend

MANILA, Philippines (Xinhua) - The stock market continued to shed its value on lack of distinct trend today as the US Fed announced earlier that it would further reduce its asset buying next month.

The bellwether Philippine Stock Exchange index retreated 1.22 percent or 78.09 points to 6,339.26, while the broader all-share index fell by 0.84 percent or 32.57 points to 3,840.27.

Trading volume reached 1.38 billion shares worth P13.33 billion ($294.75 million) with 79 stocks advancing, 79 declining, and 47 were unchanged.

Of the six counters, only the property sector bucked the trend.

"Philippine equities climbed up for two days but failed to sustain its momentum (this week), succumbing to its lowest level for March," Joyce Anne Ramos of AB Capital Securities, Inc. said in her daily stock market comment.

Among the factors that contributed to the drop was the recent statement of the U.S. Federal Open Market Committee (FOMC) that it will further reduce the asset purchases by $10 billion to $55 billion by April.

For the week, the index lost 51.98 points or 0.81 percent with the holding sector shedding the most.

"The composite index has moved in upswings and downswings without a distinct trend throughout the week as mixed news filled the market with uncertainty," Ramos said.

On a technical basis, the market broke its short-term support level at 6,400 and 6,350, but remains mid-way through its three- month upward trend channel.

Ramos said should the anticipated market developments turn out positively in addition to the possibility of window dressing for the end of first quarter, she expects that the local bourse will slowly inch upwards to test the resistance levels at 6,550 and 6,570.

Stocks in the 30-company index closed mixed. Among those sold down were JG Summit Holdings, Inc., heavyweight Philippine Long Distance Telephone Co., and DMCI Holdings, Inc.