Philippine share prices slipped on Thursday as investors pocketed gains from the recent climb a 15-month high on the PSEi, citing the second quarter gross domestic product (GDP) results as an excuse to take profits.
The bellwether PSEi dipped by 46.08 points or 0.64 percent to 7,114.38 at the noon close. The All Shares index slipped by 23.23 points or 0.55 percent to 4,208.57.
The market went into a correction phase after investors pocketed gains following days of anticipating better numbers from the second quarter output, AB Capital Securities Inc. research head Jose Vistan told GMA News Online.
"The market is a market that discounts events in the future. In the past few days, people have priced in a good GDP result and the changes in the MSCI, pushing the index higher," he said.
"Now, people are taking a sell-on-news mentality after GDP came out higher than the 6.1 percent consensus," he added.
Early Thursday, the Philippine Statistics Authority (PSA) reported the economy expanded by 6.4 percent in the second quarter, matching that of Malaysia as the second fastest in Asia next to China.
DA Market Securities Inc. said a GDP result below 5.7 percent will be considered weak, while 5.7 to 6 percent will show improvement but maintains concerns of a slowing economy and above 6 percent will be considered strong.
Meanwhile, the weight of Philippine Long Distance Telephone Company, Ayala Land Inc., Ayala Corp. and Energy Development Corp. were adjusted higher in the MSCI Philippine index, a measure of the performance of large and mid-cap companies in the Philippine market. The adjustment will take effect on September 1.
The market will continue to correct but will not see a steep drop given the positive news, Vistan said.
"It's normal for a correction to take place, since this is an attractive level to sell," he added.
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