Index continues retreat on weak reg’l markets

MANILA, Philippines - The Philippine Stock Exchange index (PSEi) retreated for the second consecutive day yesterday as it joined the downtrend in regional markets.

The PSEi slipped 0.45 percent or 32.91 points to 7,261.30, while the broader all shares index dropped 0.31 percent or 13.45 points to 4,301.45.

“The market tracked offshore leads of regional market weaknesses as markets declined on rising geopolitical tensions in Russia as lawmakers drafted a bill on foreign asset freeze in response to trade sanctions,” said Gab Aguila, analyst at DA Market Securities Inc.

Aguila said the decline was also a continuation of a correction after the market tested the 7,400 resistance on Thursday.

“However, momentum remains strong. As much as there has been reactions to regional concerns and profit taking, there has also been sustained momentum of investors taking the dips as opportunities to buy,” he said.

The three main index on Wall Street ended at a loss, led by the Nasdaq which slipped 1.94 percent or 88.74 points.

Locally, all counters also finished on the red, with the services sector taking the largest drop of 1.09 percent or 23.89 points.

Value turnover again declined to P9.20 billion from P9.48 billion as decliners beat advancers for the second straight day, 92 to 77, while 47 stocks did not change.