MANILA - Share prices fell sharply Tuesday after three straight sessions of record-breaking gains.
The PSE index closed at 8,162.70, down 1.59 percent from Monday's new record high in what one analyst said was a correction.
Victor Limlingan, managing director of Regina Capital said the gains of the past three sessions were due to short-term trading moves as there wasn't really any "dramatic news" that would serve as a catalyst for the gains.
"What has changed in the last three days for this dramtic runup?" Limlingan said in an interview with ANC Market Edge. He pointed out that there were no signs of 'dramatic improvement' in the earnings of listed firms or breakthroughs in the government's tax reform initiative.
Limlingan said that for the stock rally to be justified, investors would need to believe that the situation on the Korean peninsula would be resolved peacefully, that the government's tax reform package would be passed largely intact, and that the infrastructure program would be rolled out as quickly as the government said.