The decline on Monday was led by large-cap names such as International Container Terminal Services (-1.46 percent to P404), BDO Unibank (-2.11 percent to P158), and SM Prime Holdings Inc. (-3.15 percent to P32.30).
Sentiments remain bullish
“We believe the index has undergone a healthy correction following its recent rally. Despite this, momentum remains robust, as the average value turnover for the month stands at P10 billion, significantly higher than in previous months,” said Wendy B. Estacio-Cruz, research head of Unicapital Securities.
“We are closely monitoring key local catalysts, such as the Philippine inflation and unemployment data set to be released on October 4 and October 8, respectively, which could provide insights into the extent of further [Bangko Sentral ng Pilipinas] rate cuts this year,” she added.
The PSEi traded as high as 7,469 last week after breaking past 7,400 on September 23.
“We have been expecting a correction for quite some time now, and this is a much-needed pullback from overbought levels,” said AP Securities research head Alfred Benjamin R. Garcia, who observed heavy selling at SM Investments near the close.
7,000 support to hold
“We can only speculate on the cause of the sell-off, but it could be related to the consumer expectations survey that came out late last week,” he said.
Garcia said downward movements for the PSEi were likely capped at the 7,150-7,200 levels.
“A break below 7,000 is out of the question for me at this point,” he said.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
