PSEi Takes a Minor Dip as Market Reacts to Profit-Taking

At the start of the week, there was a slight decline in the Philippine Stock Exchange index (PSEi). This downturn came as investors began to reap profits following the index's climb to the 6,400 mark in the previous week. On Monday, the PSEi saw a reduction of 2.94 points, a modest 0.04% dip, closing at 6,475.50. In contrast, the broader all shares index experienced a slight boost, going up by 6.59 points or 0.19%, ending the day at 3,416.14.

Market's Reaction to Global Cues

The financial markets witnessed caution, with selling pressures noticeable as the PSEi approached the 6,500 threshold. Juan Paolo E. Colet, a China Bank Capital Corp. Managing Director, noted via a Viber message, that the market showed signs of nearing an overbought state after last week's significant gains, prompting some investors to start locking in their profits.

Further influencing the market's demeanor were comments from US Federal Reserve officials who hinted at modifying expectations for rate cuts in the upcoming year. This affected investor sentiment, as emphasized by Mr. Colet's remarks.

Local and Sectoral Index Movements

Jovis L. Vistan, Vice-President of AB Capital Securities, Inc., articulated that the session's initial positive momentum lost some steam towards the end. The local stock prices closed with minimal losses and faced resistance near the 6,500 level despite a positive opening buoyed by the optimism that global interest rate hikes had peaked.

Sector-wise, the day ended with a mixed bag. Industrials, financials, and holding firms saw declines. On the other hand, the property, services, and mining and oil sectors enjoyed gains. Regina Capital Development Corp.'s Head of Sales, Luis A. Limlingan, also communicated over Viber, suggesting that the market actions signified strategic moves by investors as the year-end approaches.

Trading Numbers and Investor Sentiment

The market’s value turnover fell significantly to PHP 5.4 billion on Monday, with 602.65 million issues traded, stepping down from Friday's PHP 10.2 billion with 897.2 million shares exchanged. However, the number of advancing stocks outdid the decliners with 100 against 77, while 46 stocks did not record any change in price.

Moreover, net foreign buying showed an uptick, registering at PHP 625.25 million on Monday, elevated from PHP 448.43 million observed on Friday.

As for the PSEi's performance outlook for the week, AB Capital’s Mr. Vistan provided an estimated support level at 6,300 and a resistance level at 6,530.

PSEi, Profit-Taking, Investors