RP share prices close mixed as market consolidates

Share prices on the Philippine Stock Exchange closed on a mixed note despite a rise of more than half a percent in the main PSE index as the market enters a consolidation phase in the wake of the recent bull run. The PSEi was up 27.5 points or 0.66 percent to close at 4,194.06 based on the PSE market information bulletin at 12:10 p.m. Losers led gainers 68 to 63, with 37 issues unchanged. More than 888.044 million shares valued at P5.442 billion changed hands. The tendency to cash in on gains among local investors was evident with the initial public offering of Cebu Air Inc., operator of budget airline Cebu Pacific, said Harry Liu, president of Summit Securities Inc. The transaction value continues to show foreign participation, but the recent run up pushed many issues to overbought conditions that there is now a lot of shifting toward blue chips issues that have more room to grow, Liu said. With the Cebu Air IPO in place, many of the locals are liquidating positions to get into the new issue, Liu noted. The net effect is that “we are going into consolidation," he added. A consolidation phase reflects a downtrend in share prices after a run up as the market gets used to new and higher price levels, traders said. Liu said that the 3,970-4,000 band on the PSEi is the support level for the ongoing consolidation. — VS, GMANews.TV