GDP growth results trigger profit taking
Feb 01, 2013 (Menafn - The Manila Times - McClatchy-Tribune Information Services via COMTEX) --The Philippine benchmark stock index retreated even with the impressive gross domestic product (GDP) growth results released by the government on Friday, as investors opted to go on profit taking.
Freya Natividad, analyst at the online brokerage 2TradeAsia.com, said that the stock market slipped because investors decided to go on profit-taking amid the release of the impressive Philippine GDP growth results for 2012.
"Supply pressures were felt today [Thursday], as the PSEi [Philippine Stock Exchange index] attempted to stay above the 6,300 threshold. The drop was also driven by a 'sell-on-news' approach, following better-than-expected GDP data in 2012," she added.
Jonathan Ravelas, chief market strategist for Banco De Oro Unibank Inc., said that the profit-taking he forecasted on Wednesday probably occurred during yesterday's session.
"This could be the correction that I was mentioning on Wednesday. Sell on news," he said.
On Thursday, the government released the GDP results for 2012, which rose 6.8 percent during the fourth quarter year-on-year. The growth for last year was 6.6 percent.
The Philippine Stock Exchange index snapped its record-breaking run on Thursday after breaching the 6,300 mark during the morning session, erasing 28.49 points, or 0.45 percent to 6,242.74.
During the morning session, the PSEi registered a new intraday high at 6,332.27.
For today, the market is likely seen moving sideways.
"Retesting of the 6,170 resistance might be felt, before climbing to higher levels," Natividad said.
Meanwhile, the broader all-shares index fell 0.30 percent, or 11.99 points to 3,937.54.
The number of sub-indices that ended in the red also outnumbered those that finished with gains.
Financials declined 2.04 percent, or 33.75 points to 1,616.60, while services closed with a 1.72-percent decrease or 32.43 points to 1,850.32.
Mining and oil also registered losses, falling 0.85 percent, or 184.39 to 21,550.13, followed by property, which went down by 0.31 percent, or 7.72 points to 2,514.12.
Holding firms, on the other hand, registered marginal gains of 0.79 percent, or 43.68 points to 5,555.78, while the industrial counter inched up 0.50 percent, or 47.41 points to 9,504.39.
Losers, this time, prevailed over advancers, 106-62, while 44 shares were unchanged.
On Wednesday, the benchmark index raced to its 12th all-time high for this year, closing 0.58 percent, or 36.50 points to 6,271.23.
Amid the new record, the benchmark index also breached the 6,300-level, trading at a record of 6,310 as of 2:34 p.m. on Wednesday.
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