Saturday, December 15, 2012

Profit Taking Continues in PSE

The local equities market dragged as investors continued to take profits from the recent all-time highs. The PSEi lost 80.84 points, or -1.40%, to close at 5,707.11.

All sectoral indices ended in the red led by property which lost 1.61%, holding firms which lost 1.45% and financials which lost 1.38%.

Index declines were led by SM (-1.92%) and ALI(-3.09%). Market breadth was negative with declines outnumbering advances 106 to 71 with 34 stocks unchanged. Value turnover was at Php 12.77 billion.

Meanwhile, according to the Bangko Sentral ng Pilipinas, total outstanding loans issued by universal and commercial banks grew by 15.8% year-on-year to Php3.08 trillion as of end of October.

The increase was partly driven by the low interest rate environment which, stimulated consumers and businesses to borrow more from banks. Bank lending is expected to stay strong as interest rates were seen to remain low in the coming months.

Moreover, total outstanding loans to consumers improved by 13.9% year-on-year to Php250.12 billion and the total outstanding loans to businesses reached Php2.8 trillion, up by 16.4% year-on-year.