PSEi retreats but hits new intraday high

MANILA, Philippines (UPDATED) – Stocks fell on Tuesday, January 15, as traders took profits following recent gains.

The Philippine Stock Exchange index (PSEi) closed down 6 points or 0.1% at 6,087.67.

The bellwether index still broke records however when it hit 6,140.72 in mid-day, a new intraday high.

The broader all-share index edged down 1.04 points or 0.03% to 3,836.10.

Sectoral indices were mixed.

Losers outpaced gainers, 97 to 73, while 45 stocks were unchanged.

A total of 3.96 billion shares worth P9.07 billion were traded.

Analysts earlier said the market would consolidate after rallying to all-time highs since the new year began.

Nevertheless, they said investors remained upbeat over several positive news on the local economy.

Investors cheered the securities regulator’s announcement last week that it might relax draft rules on foreign ownership in the country. The Securities and Exchange Commission said it might apply the 40% constitutional foreign ownership limit only on common shares, not all classes of shares.

Boosting sentiment further was British banking giant Barclays’ projection that the Philippines would attain investment grade status soon, resulting in huge demand for the country’s bonds.

Barclays said in a report released on Monday, January 14, it sees the Philippines receiving two credit rating upgrades — one in the second semester of 2013 and the other in the first half of 2014.

The Philippines is now only a notch below investment grade.

– Rappler.com