Philippine stocks slipped in active trading Wednesday, failing market expectations of touching the 5,000 mark on the main index.
The resistance is quite strong at the 4,950 level, said Freya Natividad, head of research at F. Yap Securities Inc., noting that investor perception labels Philippine shares expensive at such level.
Compared to its peers in the region, especially Indonesia, the Philippine stocks are a bit expensive at 13 times 2013 earnings and 14 times this year against Jakarta’s 10 times, said Natividad.
The main Philippine Stock Exchange index (PSEi) shed 40.81 points or 0.82 percent to close at 4,893.48.
Over 21.385 billion shares valued at P10.084 billion were traded during Wednesday’s morning and afternoon sessions.
Losers outpaced winners 115 to 64, with 33 issues closing unchanged.
A lot of the volume reflected second-tier stocks and a lot of block sales, said Natividad.
Other markets in the region fared no better.
“Asian shares and the euro fell on Thursday on concerns about global growth driven by higher oil prices and data showing the euro zone may slip into recession, fanning fresh worries about Greece's debt restructuring challenges,” according to a Reuters report.
MSCI's broadest index of Asia Pacific shares outside Japan slid 0.6 percent, having consolidated from recent rallies after the much-awaited deal for a €130 billion Greek bailout was sealed earlier in the week. Sectors sensitive to growth cycles, including technology and materials, underperformed, Reuters noted.
"Now that the Greece's second rescue package has been decided and priced into the market, markets are already looking for the next problem," said Yoshihiko Tabei, general manager of capital markets at Kazaka Securities.
"And that next problem is Europe's fiscal reform and how those austerity measures will be achieved across the bloc," Reuters reported, citing the Kazaka Securities general manager.
“Although the Philippine market is positive and on the upside from last year’s… the price-earnings levels are seen as quite expensive,” said F. Yap’s Natividad. — With Reuters, GMA News
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