Why PSEi stock market closed down feb 14 2012

PSEi stock market closed down feb 14 2012 : Stocks retreated from the 4,800 level once more on Tuesday, as investors took profit in the face of credit rating downgrades Moody’s Investors Service inflicted on several European economies.

The Philippine Stock Exchange index (PSEi) shed 0.54% or 26.10 points to close at 4,775.93, while the broader all-share index fell 0.59% or 19.23 points to 3,236.

The market appears to have taken Valentine’s Day to heart, pulling equity prices in the red at the noon break on extended worries over Europe’s fate after Moody’s downgraded six European economies’ credit ratings, The market’s drop was triggered by widespread profit taking,

the market’s drop was an immediate market reaction, like other credit downgrades before. It is part of the market’s ongoing consolidation, International credit rating agency Moody’s Investors Service slashed the grades of Italy, Malta, Portugal, Slovakia, Slovenia and Spain, while assigning a negative outlook to Austria, France and the United Kingdom.

omestic turnover improved to P8.25 billion yesterday from P7.77 billion on Monday, due largely to a block share sale by power distributor Manila Electric Co. (Meralco), which yesterday sold a total of 6.07 million shares at a discounted P90 apiece.

Meralco shed 0.74% or P2 to close at P270. Decliners led advancers 93 to 67, while 48 stocks were unchanged. Net foreign buying totaled P251.62 million from P234.26 million.

Most sectoral indices, except for one, closed lower:

• mining and oil plunged 2.17% or 561.05 points to 25,267.65;
• holding firms lost 1.19% or 45.83 points to 3,816.49;
• property dropped 0.60% or 10.52 points to 1,725.96;
• industrial declined by 0.44% or 32.15 points to 7,209.37; while
• services gave up 0.18% or 3.19 points to 1,744.49.

The financial sectoral index managed to defy the market’s overall weakness and closed higher by 0.41% or 4.66 points to close at 1,149.03.

Banking stocks fueled the financial index’s rise, according to Ms. Abadillo and RCBC Securities, Inc. in a market report it released yesterday. Sy-led BDO Unibank, Inc. rose by 1.90% or P1.20 to close at P64.35 per share. Bank of the Philippine Islands, the banking arm of the Ayala group, gained by 1.32% or 90 centavos to P69 apiece. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today

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