• Stock market dips again on extended profit-taking


    Investors opted for profit-taking for a second straight day on Wednesday, taking positions ahead of the Bangko Sentral ng Pilipinas (BSP) Monetary Board policy meeting today.

    The Philippine Stock Exchange index (PSEi) lost 40.89 points or 0.56 percent to close at 7,212.78, while the All Shares index was down 25.66 points or 0.60 percent at 4,255.15.

    AB Capital Securities Inc. Equity Analyst Joyce Anne Ramos said investors decided to cash in on gains for a second day following the market’s recent passing of the 7,300 level.

    “This is just an extension from yesterday’s pull back. Investors waited for the market to hit the 7,300 resistance levels. When it hit 7,300, the market pulled back to 7,200 from investors’ profit taking,” Ramos said.

    Besides profit taking, Ramos said US markets’ decline also factored in the lower PSEi close on Wednesday.

    “The market also copied US markets, which were down as well. The market decline is more expected because of the bullish streak of the market up to 7,300 on Monday,” she said.

    Overnight, US markets were in the red: the Dow Jones was down 97.55 points, the S&P 500 lost 13.10 points, and the Nasdaq deduced 40 points.

    Ramos said today’s Monetary Board meeting will largely affect the buyers’ view of the market, and will influence whether or not to buy further to raise the market towards 7,400.

    “Mostly, investors are taking positions to be safe. Usually, the consensus is there will be a rate hike. But it depends. Some investors have already done their profit taking, some are just on the sidelines,” Ramos said.

    “As of now, it’s hard to tell [how the market will move in the next few days]. I guess we will have to wait for the BSP decision. We’ll be on the wait-and-see as it will be a big factor in trading decisions of investors,” she added.

    The sectoral indices all ended in the red on Wednesday, with financials dipping 0.17 percent or 2.87 points to 1,676.41; industrials down 0.49 percent or 54.50 points at 11,087.42; holding firms slipped 0.45 percent or 28.73 points to 6,353.54; services were off 0.54 percent or 12.19 points at 2,232.67; mining and oil plummeted 1.56 percent or 281.79 points to 17,724.84; and property skid 0.69 percent or 19.05 points to 2,727.65.

    Eight of the top 10 active companies lost while only two firms gained. Advancers were Robinsons Retail Holdings Inc., which increased 1.49 percent or P1 to close at P68 per share, and ALI which improved 0.30 percent or P0.10 to P33.55 apiece.

    Among the decliners were PLDT, Nickel Asia Corp., Puregold Price Club Inc., Alliance Global Group Inc., SM Prime, BDO Unibank Inc., Ayala Corp., and SM Investments Corp.

    Losers outnumbered gainers, 105 to 71, while 43 shares were unchanged. 1.52 billion shares valued at P8.951 billion changed hands during the session.

    On Tuesday, the PSEi deducted 61.27 points or 0.84 percent to close at 7,253.67, while the All Shares declined 38.05 points or 0.88 percent to 4,280.81.


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