Shares retreat from “overbought” levels
The local bourse pulled back from the heights on Monday after days of being overbought, mostly due to last-minute dumping of index heavyweights.
By the closing bell, the benchmark Philippine Stock Exchange Index (PSEi) tumbled by 2.1 percent, or 155.65 points, to 7,272.65.
Likewise, the broader All Shares Index shed 1.3 percent, or 51.75 points, to close at 3,918.68.
A total of 1.08 billion shares worth P7.21 billion changed hands as foreigners made net purchases worth P103.40 million, stock exchange data showed.
“We have been expecting a correction for quite some time now, and this is a much-needed pullback from overbought levels,” said Alfred Benjamin Garcia, research head at AP Securities Inc.
The PSEi recently entered the bull territory—meaning it rose by at least 20 percent from a recent low—with analysts warning of a possible short-term sell-off to correct higher-than-usual prices.
The conglomerates registered the steepest decline at 2.84 percent as Sy family-led SM Investments Corp. (SMIC) went down.
International Container Terminal Services Inc. was the most actively traded stock as it dipped by 1.46 percent to P404 each.
It was followed by BDO Unibank Inc., down 2.11 percent to P158; SM Prime Holdings Inc., down 3.15 percent to P32.30; Bank of the Philippine Islands, down 1.39 percent to P135.10; and SMIC, down 4.02 percent to P956.
Universal Robina Corp. was down 0.77 percent to P103.70; Ayala Land Inc., down 1.61 percent to P36.60; Ayala Corp., down 2.96 percent to P671.50; GT Capital Holdings Inc., flat at P730; and Metropolitan Bank and Trust Co., down 3.02 percent to P78.60 each.
Losers outnumbered gainers, 115 to 93, while 45 companies closed unchanged.
