The local equities market took a breather to end its five-day rally after investors succumbed to profit-taking. SMPH and SMDC shares led the decline after their recent run-up this week.
The PSEi dropped by 2.35 points, or -0.04%, to close at 6,665.06. Most sectoral indices ended lower led by services (-0.57%) and property (-0.26%) while financials (+0.52%) and industrials (+0.07%) ended in the positive territory. Market breadth was negative with declines outpacing advances 94 to 68 with 48 stocks unchanged. Value turnover reached Php9.14 billion.
Data from the Bureau of the Treasury (BTr) showed that the country’s debt-to-GDP ratio escalated by 51.4% in 2012. The latest debt-to-GDP ratio has been a minor obstacle for the country’s goal of achieving investment grade rating by this year.
The government’s outstanding debt grew 9.8% to Php5.437 trillion in 2012 as compared to 2011’s posted outstanding debt of Php4.95 trillion. Moreover, international standards provided that a country’s debt-to-GDP ratio should not be greater than 50% for it to be considered manageable.