The Philippine stock exchange index or PSEi made a significant drop today followed by a spree of profit taking. The index succumbed to the bears as it closed down to 4,611.68 down by 58.81 points or 1.26%. The index even reached a low of 70++ points down in the red zone mainly driven by a massive sell down for TEL which is down 4.47% from yesterday's trade. The massive sell down for TEL reached Php1.02B followed by MEG closing 3.95% down with a trade volume of Php483M.
The third consecutive day it is for the Philippine index looking to end the week down in red for the first time in three weeks. Trade volume for the day was significant, about Php 6.9B leaving advancers, decliners, unchanged at 84-84-45 - still modest for the bulls. Also to take note, it is the second straight day the property and service sector lead the decline each down by 2.51% and 3.11%.
The questions for traders now is, is this just really just a correction or we are living under so much borrowed time since the market isn't supposed to go up this fast and at this level? It depends, we have to take not that forecasts for the year is that we will be experience a bit of a slowdown. If the euro issue does not stop, definitely, we will experience volatility but who knows, its still January, a lot of months to go for the year for us to conclude too early.
The week is most likely to be concluded to go to the bears. Let's all cross our fingers that it would be the opposite in the next. Happy Trading! Go Philippines!