Index continues slide on weak regional markets

MANILA, Philippines - The stock market extended its slide yesterday on continued selling following the downtrend in most markets in Asia.

The Philippine Stock Exchange index (PSEi) shed 0.17 percent or 12.05 points to close at 6,897.77, while the All Shares index fell 0.72 percent 28.78 points at 3,978.30.

Analysts said the gloomy mood in the region due to declining commodity prices prevailed over the continued onslaught of third quarter company earnings – many of which were positive.

Expected catalysts such as the Bangko Sentral ng Pilipinas policy meeting late Thursday also failed to inspire investors.

Holding firms were the lone bright spot in yesterday’s trading after finishing with a 0.52-percent improvement.

The rest finished in the red with mining and oil firms and industrial companies suffering the biggest drop of 1.28 percent and 1.16 percent, respectively.

Market breadth was negative as decliners slaughtered advancers,118 to 52, while 46 stocks were unchanged.

Value turnover improved but remained thin at P7.37 billion.

“The PSEi closed slightly below channel support and is likely to continue its corrections if prices do not recover at least above 6,925,” Regina Capital Development Corp. managing director Luis Limlingan said.

“Near-term catalysts for market direction are the continued third quarter earnings results and GDP at the end of the month. Meanwhile, Fed policy meeting will be held Dec. 16,” DA Market Securities Inc. added in its report.