Stocks reverse course, finish mostly lower

The stock market returned to negative zone yesterday. The benchmark Philippine Stocks Exchange index (PSEi) ended lower again, finishing at 7,197.62, down 38.54 points or 0.53 percent.

Likewise, the broader All- Shares gauge slipped by 14.89 points or 0.33 percent to end at 4,383.84.

Most of the sectors also ended in red as well except for the holding firms and mining and oil which finished in the green zone.

Total value turnover remained thin at P5.144 billion. Market breadth was negative, 120 to 74 in favor of decliners while 40 issues were left unchanged.

Traders said the market’s low volume shows that investors are still looking for catalysts that would spur a firmer return to the market.

Jonathan Ravelas, chief market strategist at BDO, said three things could help encourage market investors to invest in stocks again — strong third quarter corporate earnings, the easing of inflation and when interest rates stabilize.

The report of SM Prime Holdings Inc., the integrated property developer of the Sy family, of strong third quarter earnings are seen as an indication of things to come for other listed firms.

SM Prime reported a 17 percent increase in its consolidated net income in the nine-month period to P23.44 billion from P20.05 billion a year ago.