Index retreats on lack of strong leads

MANILA, Philippines - Share prices retreated yesterday due to the absence of strong positive leads, analysts said.

The Philippine Stock Exchange index (PSEi) plunged 39.50 points, or 0.55 percent, while the broader All Shares index shed 21.74 points, or 0.53 percent, to close at 4,054.

“It’s all about sustainability. Following last week’s five-day advance it would’ve been fair to expect a spillover, if not excitement from investors to push the measure back into positive territory. As it turned out however, the absence of a strong positive inducement over the weekend,” said Justino Calaycay of Accord Capital.

He said the Dow Jones Industrial average dropped 290 points last Friday and the prospect of Greece concerns resurfacing after the Syriza party won the weekend election  activated what seems like the “default” sentiment of the market.

“The PSEI failed to hold a 27 points opening surge. It dropped to a low of 61.77 points before settling for a 42.37 points loss at the noon recess,” Calaycay said.

During yesterday’s trading, decliners outnumbered advancers, 110 to 71 while 35 stocks were left unchanged.