Philippine shares eased for the second straight day on Thursday due to extended profit-taking.
“Some volatility was expected amid technically overbought levels as investors pocket gains in recent market winners . . . As we previously said, the strong market run-up may require a pause/pullback to create a base/gather momentum,” said Nisha Alicer, analyst at DA Market Securities Inc.
The Philippine Stock Exchange index (PSEi) dropped by 32.68 points or 0.51 percent to close at 6,429.79, with the wider all-shares index closing at 3,878.82, a 0.15-percent drop.
Except for the property sector, which gained 30.20 points, or 1.26 percent to 2,433.43, majority of the sectoral indices posted declines.
Financials went down 6.86 points or 0.44 percent to close at 1,559.45, while industrials dipped 27.83 points, or 0.28 percent to 9,885.40. Holding firms ended down 35.68 points, or 0.60 percent at 5,868.33, while services fell 15.51 points, or 0.80 percent to 1,915.30. Mining and oil dipped 109.93 points, or 0.76 percent to 14,345.50.
The volume of shares traded was 1.8 billion shares valued at P6.5 billion. Decliners beat advancers 79 to 69.
Some of the biggest decliners were Philippine Long Distance Telephone Co., Aboitiz Power Corp., Metropolitan Bank and Trust Co., Bank of the Philippine Islands, Petron Corp. and Universal Robina Corp.
According to Alicer, the next formidable resistance levels are at the previous high of 6648 and the major levels 6700 to 6800.
“However, an attempt to break major resistances may signify a return to previous highs seen last year -7,000 and 7,400,” she noted.
On Wednesday, the market pulled back on profit-taking after the PSEi breached the 6,500 mark on Tuesday.
The PSEi ended down 67.11 points or 1.03 percent at 6,462.47 on Wednesday, while the wider all-shares index lost 30.73 points or 0.78 percent to 3,884.49.