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MANILA - (UPDATED 5:01 p.m.) Philippine share prices on Thursday dropped for a fifth straight session, bringing the benchmark index just a few points above the 5,200 level, on concerns that the global economy is faltering.
At the Philippine Stock Exchange, the composite index shed 30.25 points or 0.58 percent to close at 5,205.19.
Leading the market's decline was the financials sector, which lost 0.91 percent.
Market breadth was positive as gainers beat losers, 81 to 74, while 41 stocks were unchanged. A total of 3.51 billion stocks worth P5.40 billion changed hands.
"Concerns are there and investors are using them as an excuse to take profits," said Jose Vistan of AB Capital Securities Inc.
Overnight, the Dow Jones Industrial Average fell 48.6 points, or 0.38 percent, to 12,604.53 after Federal Reserve officials offered a bleak outlook of the US economy and little clarity on next steps to stimulate growth, according to minutes from the Federal Open Market Committee’s June meeting.
Asian markets closed mostly lower after South Korea surprisingly cut interest rates, underscoring fears of a faltering global economy.
This was ahead of the release of China's gross domestic product for the second quarter, which is expected to show its weakest growth in three years.
"With all of the worries, it increases the chance for quantitative easing 3 which is good for the market. It increases liquidity and lowers interest rates," said Vistan.
The local market's five-day losing streak is part of the consolidation after the PSEi hit a new high of 5,369.98, the 20th time that the benchmark index rewrote record levels.
"There is negative bias because the market is really at overbought conditions," said Vistan.
Actively traded stocks were Puregold, GT Capital, PLDT, Ayala Land and Ayala Corp.
Top gainers were Manchester International, Central Azucarera de Tarlac and Interport Resources, while the day's biggest losers were SPC Power, Philippine Realty and IPeople.
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