Index plunges on lack of positive leads

MANILA, Philippines - The Philippine Stock Exchange index (PSEi) closed lower yesterday due to the absence of positive leads to push prices higher.

Analysts said investors may have taken a breather from last week’s four-day advance and also took a cautious stance ahead of President Aquino’s last State of the Nation Address (SONA).

The main composite index plunged 118.08 points or down 1.54 percent to close at 7,547.44, while the All Shares index declined 55.02 points to  close at 4,320.13.

“Something spooked the market again as a new trading week opened. At this point, there just isn’t enough impetus to push prices past their recent highs. Externally, news has started to feed fresh influences deemed generally negative or at least not inducing optimism. It could have been just a breather from a four-day advance. But having erased roughly 80 percent of the 124 points gained over that period and about one-third of the aggregate 302 points rise in 10 of the last 11 sessions,” said Justino Calaycay, analyst at Accord Capital.

The financial index settled at 1,659.17, down 30.37 points, while the industrial index closed at 11,445.66, lower by 98.88 points.

Similarly, the holdings firms index ended at 6,843.91, down 66.66 points, while the mining and oil index finished at 12,038.55, lower by 90 points or 0.74 percent.