RP share prices mostly down; PSEi adjusted on ALI

Share prices on the Philippine Stock Exchange on Wednesday were mostly down, with the main index corrected from the "unnatural behavior" Tuesday of the shares of Ayala Land Inc. (ALI), a part of the composite index. Corrections were made to the index "after an unusual behavior of the Ayala Land stock transpired," said Juanis Barredo, chief technical analyst of CitisecOnline.com Inc. The PSEi closed at 3,554.15, up 23.65 points or 0.6699 percent. Industrial and property sectors recorded gains. Over 1.158 billion stocks valued at P4.414 billion were traded. Decliners outpaced advancers 96 to 38, while 33 stocks were left unchanged. "A trader posted [Tuesday] a price of P14 for Ayala Land. That was a mistake," Barredo said. Traders now adjusted the price back to its level prior to the "mistake" made Tuesday, Barredo said. ALI, the second largest component of the index, was responsible for more than half of the loss of the PSEi which dropped 82.88 points or 2.29 percent Tuesday. The company was trading near P16 before surprisingly closing at P14 Tuesday due to massive selling. Investors were also locking in profits as stocks had reached overbought levels. Although the mood was negative due to the standoff at Rizal Park on Monday, Barredo said the consequence to the market seemed "passable." The hostage crisis, which has hogged the headlines in local and international news, may have psychologically increased investors' bias to sell, but this "wasn't the scenario on the trading floor," said Barredo. However, the US stocks extended its fall for a fourth day overnight after depressing reports on housing could affect its economic recovery. —JE, GMANews.TV