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PSEi drops in third successive trading day


The Philippine Stock Exchange index (PSEi) on Tuesday dropped for the third successive trading day on profit-taking and realignment of positions. There was an obvious realigning of positions from current holdings to the initial public offering (IPO) of Nickel Asia Corp., which started Tuesday, said Emmanuel Soller, a trader of Equityworld Securities Inc. At the same time an analyst of AB Capital Securities Inc. said that this is the third day of profit-taking since Friday as the market continues to reel from last week’s corporate results of first-tier issues like Philippine Long Distance Telephone Co., which did not sit well among investors. The PSEi dropped by 29.17 points or 0.67 percent to close at 4,266.45. Over 1.25 billion shares, valued at P4.62 billion changed hands. Decliners led advancers 97 to 41, with 41 issues closing unchanged from Monday’s levels. Based on trading volumes and values in this down trend, “this is not a reversal" of the market’s upward move “but a healthy correction," Soller said. “The market is still good for buying but timing is essential," Soller added. Philippine Long Distance Telephone Co. (PLDT) on Thursday said revenues slipped in the first nine months of the year as traditional revenue streams such as voice call and SMS or short messaging service dropped. Those who were disappointed by the news started to lock in on their gains by selling while they were still ahead, traders and analysts said. Many of those who are cashing in on gains are taking positions in the Nickel Asia IPO, Equityworld’s trader said. Nickel Asia is offering to domestic and foreign investors 304.5 million shares at P15 apiece ahead of its listing by Nov. 22, the company said Monday in a note to the Philippine Stock Exchange. It has applied for the listing of over 1.33 billion shares, according to another Nickel Asia memo on Nov. 5. Nickel Asia is the largest nickel mining company in the Philippines today, owning majority shares in six mining operations, according to its welcome note online. The principal business of Nickel Asia involves selling nickel laterite ore to customers in Japan, China and the Philippines, the company said. The underlying strength of the market is there. It just needs to get over this correction phase, AB Capital’s analyst said. — VS, GMANews.TV

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