The Philippine Stock Exchange index (PSEi) ended weak before the final bell rang to signify the last day of trade for 2016 on Thursday. The local index closed at 6,840.64, down 1.6 percent or 111.44 points from end-2015 level of 6,952.08 and down 5.80 points from Wednesday’s close.

The local stock market started the long weekend holidays as Dec. 30 commemorates the death anniversary of the Philippine National Hero, Jose Rizal. It will reopen on Jan. 3, 2017.

Here are three fast facts on the PSEi ending weak as last trade closed.

 

1. The PSEi declined as Wall Street indices slipped on Wednesday.

“We were expecting some type of window-dressing, but Wall Street’s overnight performance put some cold water on that,” Business World reported Joseph Y. Roxas, president of Eagle Equities, Inc., as saying. The Dow was down at 0.56 percent to 19,833.68 on Wednesday. The S&P 500 and the Nasdaq Composite Index finished 0.84 percent and 0.89 percent lower, respectively.

2. The PSEi did not sustain its momentum.

The local index was gaining during the intraday trade, but it failed to keep up near the closing bell. Window dressing and bargain selling were expected. “Selling seems to have dried up going into yearend,” Miguel A. Agarao, analyst at Wealth Securities, Inc., said.

PSE President and Chief Executive Officer Hans B. Sicat added that the local stock market also had its share of volatile 2016. Sicat said that these volatilities included the unexpected developments in the global political landscape as well as the interest rate hikes in the US.

“Despite this, we churned a relatively healthy capital raising number, considering most of these activities happened during the second half of the year,” Sicat said.

3. The PSEi still looks promising for next year according to Manny Cruz, chief strategist at Asiasec Equities Inc.

“It looks promising for next year, valuation is already compelling given the fact that we’re trading slightly below 15x P/E (price to earnings for 2017),” The Philippine Daily Inquirer reported Cruz, as saying. This meant that investors are willing to pay 15 times the kind of money they expect to make.

What do you think of the PSEi ending weak during the last day of trade for 2016? Let us know in the comments section below.