Philippine shares closed sharply lower on Friday, posting the
third consecutive trading day of declines, as players continued to cash
in on gains ahead of the holidays.
The PSEi
dropped 80.84 points, down 1.40 percent to 5,707.11. The broader
All-Shares index shed 33.13 points or 0.89 percent to 3,688.38.
Stocks started to drop on Wednesday, following its 37th record high a
day earlier. Analysts have since expected stocks to search for a support
level and break the current downtrend.
Nearly
2.35 billion shares were traded at P12.766 billion. Losers overwhelmed
winners 106 to 71, while 41 stocks were unchanged.
“We have been waiting for a correction. We welcome this development, as
substantial drops are needed to consolidate the market,” said Justino
Calaycay Jr., analyst at Accord Capital Equities Corp.
There were “unrealized profits” that investors needed to cash in,
Calaycay noted. “Profits have been lurking for a long time, investors
realized the need to take it,” he said.
Fundamentally, some investors also cashed in on gains as the deadline
for a solution to the US “fiscal cliff” controversy looms. “There
remains no clarity as how things will go down in the US,” said
Calaycay.
US lawmakers still have not reached a
compromise on averting automatic spending cuts and tax increases that
economists claimed could send its economy off a “fiscal cliff.”
“We still expect stocks to consolidate early next week and to rise
again by the end of next week,” said Nieves Securities Inc. analyst
Miko Sayo. — VS, GMA News
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