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Reflecting developments abroad, PSEi drops 0.79% Thursday


The main Philippine Stock Exchange index fell 33.94 points or 0.79 percent to close at 4,237.65 on Thursday, reflecting developments in overseas markets.   “I think the market is just reflecting what’s happening in the Europe and US markets, with investors [in the Philippines] repositioning their portfolios in preparation for 2012,” said Freya Natividad, investment analyst at F. Yap. Securities. Inc.   The underlying sentiment is “still upside and dips are expected for the upside” move, Natividad said and noted that most investors remain cautious because of what is happening in Europe and the US and,” now, also in China.”   “When China contracts some investors tend to be frightened, because Japan is still recovering from the disasters in suffered,” she added, explaining who will catch the global economy now with China also showing signs of weakness.   According to a Reuters report, “Wall Street closed down for a sixth straight session on Wednesday and stock markets across the world hit six-week lows as slowing factory activity in China and Germany stoked recession fears… The Dow Jones industrial average slid 236.17 points, or 2.05 percent, to end at 11,257.55.”   With the PSEi treading close to the 4,200 support level, F. Yap’s Natividad expects Philippine shares to hit bargain levels.   “We are now trending sideways, and we need more volume to [push toward] the upside potential,” she added.   More than 2.915 billion shares valued at P17.704 billion changed hands during Thursday’s session.   Losers led winners 107 to 45 and 44 issues closed unchanged. — TJD, GMA News

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