PSEi falters as investors wait for positive developments

The Philippine Stock Exchange index on Monday faltered as investors stayed on the sidelines waiting for the initial public offering (IPO) of the shares of Gokongwei-led Cebu Air Inc. Investors continued to lock in on gains from last week’s market run as “they wait for the stock market debut" of Cebu Air, operator of budget carrier Cebu Pacific Air, said trader Justino Calaycay of Accord Capital Equities Corp. The listing of Cebu Air shares on the PSE is Oct. 25. The PSEi fell 18.22 points or 0.43 percent to finish at 4,218.79, according to the PSE market information as of 12:10 p.m. More than 1.719 billion shares valued at P5.127 billion were traded. There were 46 advancers, 90 decliners, and 35 issues were unchanged. Calaycay said the market pulled back even though expectations grew that the US Federal Reserves will take more action to boost the flagging economic recovery. The Dow Jones Industrial Average went above 11,000 for the first time in five months Friday, closing at 11,006.48 and effectively erasing the effects of a long summer slump for US stocks, according to an AP report. Maria Arlysa Narciso, an analyst of AB Capital Securities Inc., pointed out the US holds minimal effect to the local bourse as investors wait for the IPO of Cebu Air shares. — Jesse Edep/VS, GMANews.TV