Index resumes downward trend

MANILA, Philippines - The stock market plunged 154.66 points or 2.006 percent to finish at 7,553.76 yesterday following a technical rally on Thursday.

Analysts said the drop was expected following Thursday’s unusual jump .

“Well I think majority of the decline was caused by the unusual jump yesterday on close - maybe due to last second index buying prompted by an oversold market. But because prices normalized off that heavy up sway, the negatives began to pile in. We still see corrective bias but the oversold state will cause hiccup rallies on occasion,” said Juanis Barredo, vice president and chief technical analyst at COL Financial.

Luis Limlingan, managing director at Regina Capital said the market simply resumed its downward trend.

“The Philippine markets resumed their downward trend as it took yesterday’s run up as an anomaly. The 7,700 resistance proved rather firm as we slipped closer back to the 7,500 level. Markets became choppy once more as investors continue to speculate on the upcoming US Fed rate hike decision next week,” he said.

During yesterday’s session, the broader All Shares index also plunged 55.83 points or 1.21 percent.

All counters likewise retreated into negative territory following Thursday’s upward trend.

Total value turnover closed at P13.80 billion as foreign selling continued. Decliners edged out advancing stocks, 102 to 78 while 47 stocks were left unchanged.