Index retreats on string of local concerns

MANILA, Philippines - The local stock market retreated for the second consecutive day yesterday on the back of local concerns.

The Philippine Stock Exchange index (PSEi) tumbled 0.18 percent or 12.58 points to close at 7,103.55, while the broader All Shares index also fell 0.09 percent or 3.96 points at 4,195.87.

“Investors stayed out of the market on a string of concerns. Overseas markets were up but it did not influence us, so it’s the local issues that triggered the decline,” said Astro del Castillo, managing director at First Grade Finance Inc.

Del Castillo cited the ongoing port congestion problems in Manila as well as the possibility of rebidding the Cavite-Laguna Expressway (CALAX) project as factors that raised doubts in the minds of investors.

The PSEi bucked the upbeat mood provided by the US market which saw the three main indexes in Wall Street close in the positive territory.

In the US, the Nasdaq climbed 1.60 percent, while the Dow and the S&P 500 gained 1.32 percent and 1.23 percent, respectively.

Locally, value turnover stayed at the P6 billion level, ending the trading day at P6.47 billion. Market breadth was again sour as decliners topped advancers, 93 to 84, while 37 stocks were unchanged.

Counters were mixed, with the services firms leading the charge for those in the green with a 0.41 percent or 8.97 point-increase.  Financial firms, meanwhile, ended with the largest loss of 0.81 percent or 13.56 points.