The Philippine Stock Exchange index (PSEi) shed 0.87% or 42.90 points to close at 4,900.94, while the broader all-share index dipped 0.60% or 19.80 points to 3,296.60.
PSEi on Monday recorded a new high of 4,943.84, beating the previous record of 4,880.71 on Friday last week, fueled by policy easing over the weekend in China and anticipation of Greece’s bailout deal.
“Finally, after several days, the market corrected and took a breather,” Astro C. del Castillo, managing director of brokerage First Grade Finance, Inc., said in a telephone interview yesterday.
“Investors were profit taking, especially since we’re only a few points away from the 5,000 level.”
“For today [Tuesday], the market was down 42 points as we paused for a slight technical breather, given that most foreign players were on their short break in light of the Presidents Day holiday in the United States,” Freya B. Natividad, analyst of online brokerage 2TradeAsia.com, said in a separate phone interview.
This, even as Reuters reported that euro zone finance ministers finally sealed a €130-billion bailout for Greece that included slashing the country’s debt to 120.5% of its gross domestic product by 2020.
“The market has yet to digest the good news from Greece,” Elizabeth S. Abadillo, analyst of brokerage Angping & Associates Securities, Inc., noted separately by phone.
“It might factor (the euro zone development) tomorrow [Wednesday], when US markets finally open after their holiday.”
Share turnover thinned to P8.54 billion yesterday from P10.58 billion on Monday. Tuesday saw net foreign buying that nevertheless fell to P1.53 billion from P2.87 billion the day before.
Decliners outnumbered advancers 97 to 79, while 36 stocks were unchanged.
Most sectoral indices slumped, specifically: property plunged 2.76% or 52.37 points to 1,844.15; mining and oil, 2.12% or 547.66 points to 25,289.21; industrial, 0.99% or 71.58 points to 7,190.84; financials, 0.46% or 5.47 points to 1,185.58; and services, 0.22% or 3.92 points to 1,785.25.
Holdings firms, however, bucked the general decline, adding 0.18% or 7.23 points to 3,932.64.
Property firms led the market’s decline yesterday, Ms. Abadillo noted.
Among others, mall developer SM Prime Holdings, Inc. plunged 4.00% or 70 centavos to P16.80, Ayala Land, Inc. fell 3.72% or 80 centavos to P20.70, while Robinsons Land Corp. shed 3.68% or 60 centavos to P15.70.
For Wednesday, the market is expected to recover, possibly even hitting 5,000 towards Friday.
“We might close higher as we see some portfolio repositioning tomorrow,” Ms. Natividad said.
Investors will sustain bargain hunting among stocks from the financial, property and holding sectors, Ms. Natividad said.
“Even if the market failed to break the 5,000 mark Tuesday, the prospects of doing so over the balance of the week remains,” Justino B. Calaycay, Jr., analyst of brokerage Accord Capital Equities Corp., said in a market report yesterday.
But Mr. del Castillo was more cautious, saying: “It’s better if the market consolidates first before the next run-up.
He added that trades “need to gather steam”, saying “the market’s performance will still depend on news overseas
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