PSEi close lower for 2nd successive trading day on imports, US Fed

Investors continued to cash in on gains, dragging the PSEi down for the second straight trading day after the Philippines reported weak imports in March and the US Federal Reserve indicated a possible reduction in its bond buying program.

 

"The market has been down since yesterday, driven by several factors... One is external factors, particularly on concerns on central banks' quantitative easing... on FED... and other central banks are wary of the near end of measures on bond buying program," Jose L. Vistan, head of research at AB Capital Securities Inc., told GMA News Online.

 

On the domestic front, Vistan noted "leading indicators are showing some weakness on imports" which poses a challenge on attaining a 6 percent growth in gross domestic product in the first quarter.

 

Vistan said the decline, though, is not "alarming" as "the momentum of the market continues toward a correction."

 

The main PSEi fell 45.47 points or 0.62 percent to 7,268.91. The broader all-shares index was down by 19.93 points or 0.44 percent to 4,465.49.

 

All sub-indices were in the red, led by industrial with a 0.70 percent drop and financials with a 0.64 percent decline. More than 887.51 million shares valued at P7.13 billion were traded.  Decliners led advancers 95 to 57 while 56 issues were unchanged.

 

The National Statistics Office announced Friday merchandise imports continued to shrink in March to $4.9 billion, or by 8.4 percent from $5.4 billion in March 2012. 

 

"We had a magnificent rise last week and we haven't seen any drastic change in the market. Next week, the GDP results will dictate the direction of the market," Vistan said. — VS, GMA News