Philippine bourse maintains losing streak

The Philippine stock market retreated for the sixth time on Monday as investors continued to unload their shares over fears that the local equities market's fortune has been reversed. The bellwether Philippine Stock Exchange index is threatening to break below the 6,000-level after shedding another 1.32 percent, or 80.58 points, on Monday to settle at 6,004.26. Similarly, the all-share index retreated by 0.97 percent, or 35.96 points, to 3, 681.67. Trading volume reached 552.94 million shares worth 7.16 billion pesos (163.4 million U.S. dollars) with 92 stocks declining, 64 advancing, and 28 were unchanged. Of the six counters, only the financials and the mining and oil sectors bucked the trend. "The conviction that pushed the market to 31 fresh all-time records in the first five months of the year has completely evaporated and fears that the bull-market has probably reached a point of reversal begins to spread," said analyst Justino Calaycay of Accord Capital Equities Corp. The analyst noted that the composite index is just a couple hundred points above the 2012 close and any further drops will wipe out all the year's gains. Calaycay said there is an increasing number of "unbelievers" and that any further slide will pull down the index to the 5,812. 73-mark. This, he said, will strengthen the bears' claims. On the other hand, a recovery that restores the index to at least between the 6, 200-6,300 range should lend some credence to the bull's proposition that the "Santa Claus-rally" is just around the corner. For now, investors are inclined to sell their positions as most stocks in the 30-company index were bleeding heavily. Among those sold down were heavyweight Philippine Long Distance Telephone Co., SM Investments Corp., and Ayala Corp.