Lack of leads pulls down index below 6,300

MANILA, Philippines - The Philippine stock market slipped below the 6,300-level due to a lack of strong leads to encourage investors to return to the market.

The Philippine Stock Exchange index (PSEi) retreated 1.19 percent or 75.40 points to 6,267.85, bucking gains in Wall Street and other Asian markets. The broader all shares index lost 1.02 percent or 39.40 points to 3,825.46.

Abbygayle Estrella, equities analyst at AB Capital Securities Inc., said there were no strong leads while global markets were mixed, pushing the main index to reverse early gains anew.

“We will be retesting the 6,200 level,” Estrella said, adding that the aftermath of Super Typhoon Yolanda also weighed down sentiments.

Promises of economic reform in world’s second largest economy China buoyed Hong Kong’s Hang Seng index that climbed 0.24 percent or 2.25 points to 23,657.81. Japan’s Nikkei 225 fell 0.25 percent or 37.74 points to 15,126.56 due to profit taking.

Locally, almost all counters were in the red, paced by industrial firms that declined 1.52 percent or 138.54 points to 8,987.62. It was dragged by Lopez-led Energy Development Corp. that slumped 11.58 percent given the supertyphoon’s damage to the Unified Leyte power plant.

Only mining and oil bucked the trend as it gained 0.83 percent or 100.80 points to 12,199.28.

The value of shares traded improved to P7.6 billion from P6.52 billion on Monday. Decliners dominated advancers, 116 to 47, while 38 stocks did not change.