Local Equities Take A Breather

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.

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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.

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