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Tuesday, June 10, 2014

PH stock market bucks regionwide ascent on valuation concerns

Philippine share prices slipped on Tuesday as the local market continued to consolidate amid concerns that its overvalued.

At the Philippine Stock Exchange, the composite index fell 24.75 points, or 0.36 percent, to close at 6,777.98. All counters finished in the red with the property index leading the way with losses of 0.90 percent.

Decliners dominated advancers, 105 to 67, while 42 issues were unchanged. Value turnover improved to P7.99 billion from yesterday's P6.24 billion, as 1.76 billion shares changed hands.

Most actively traded stocks were PLDT, Ayala Land, Universal Robina, EDC and BDO. Top gainers were Now Corp, Vitarich and Pacifica, while the biggest losers were United Paragon, IP E-Game and PBCom.

"The view that the market is overvalued is becoming more of a consensus view. Several funds are overweight on emerging markets except the Philippines because of high valuations. We are somehow coming down to Earth after reaching lofty valuations for a pretty long period of time," said Jose Vistan of AB Capital Securities Inc.

The wake-up call came from a slowdown in economic expansion in the first quarter, raising doubts about corporate growth, said Vistan.

The Philippine Statistics Authority reported today that exports at the start of the second quarter were flat because of weak demand for electronic products.

Overnight, US stocks advanced, with benchmark indices extending their record run, on reports of mergers and acquisitions and an improving outlook for the world's largest economy. The Standard & Poor’s 500 Index rose 0.1 percent to 1,951.27, while the Dow Jones Industrial Average gained 18.82 points, or 0.1 percent, to a record 16,943.10.

Asian stocks also rose, buoyed by the record-breaking rally in Wall Street.

- Interaksyon

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