Index retreats ahead of Christmas break

MANILA, Philippines - The upcoming long holiday and the short-term volatility caused by US Federal Reserve’s tapering prompted investors to exit the local stock market yesterday.

The Philippine Stock Exchange index lost 1.49 percent or 87.99 points to end at 5,835.13, marking its second straight day in the red.

The broader all shares index declined 1.22 percent or 44.19 points to 3,589.89

“I think most investors cashed in their gains ahead of the Christmas break,” Freya B. Natividad, investment analyst at Papa Securities Corp., said in a phone interview. Trading at the local bourse is closed on Dec. 24 and 25.

The bellwether index also faced a strong resistance at the 6,000 level, with the effects of tapering also weighing down investor sentiments, Natividad said.

Local stocks bucked the trend in Wall Street that had a muted performance following Wednesday’s rally after the slight tapering was announced.

The Dow Jones Industrial average gained 0.07 percent or 11.11 points to close at a record 16,179.08, while the broader Standard & Poor’s 500 index shed 0.06 percent or 1.05 points to 1,809.60.

Asian shares were dragged by concerns over high funding costs for China’s borrowers.

At home, all counters were in the red, paced by property firms that dropped 1.81 percent or 40.04 points to 2,176.99.

Investor participation improved, with P7.59 billion worth of shares changing hands from P6.69 billion on Thursday. But losers outpaced gainers, 91 to 51, while 42 stocks did not change.