Investors in Philippine stocks opted to cash in their gains Friday, a day after the benchmark index pierced the critical 6,500-point mark.
Juanis Barredo, COL Financial Inc. chief technical analyst, said in a text message that the slight drop in the Philippine Stock Exchange index (PSEi) was caused by profit-taking.
The “market has been overbought in the last few days and needed some easing to fix hefty price increases. After an intraday high of 6,550 [points], it was far from its short-term support of 6,340 [points],” she said.
BPI Securities Corp. Chief Executive and Managing Director Michaelangelo Oyson said investors “are generally positive” on the medium-term outlook for the country’s economy.
”We saw profit taking today following a recent significant run-up in the market. While investors are generally positive on the medium-term outlook for the Philippines, they are also cognizant of the impact of political events in Ukraine on global risk premium and funds flow,” Oyson told The Manila Times.
“For investors who missed the recent run, we recommend buying on dips,” he added.
The PSEi dropped 0.54 percent, or 34.99 points to 6,481.83, while the wider all-shares index dipped 0.34 percent, or 13.30 points to 3,897.33.
All sectoral indices registered losses, with financials down 0.78 percent, or 12.36 points at 1,564.31, while industrials lost 0.55 percent or 53.93 points at 9,831.84.
Holding firms shed 0.50 percent, or 29.90 points to 5,911.11, while services eased 0.04 percent, or 0.79 points to 1,940.57.
Mining and oil dipped 0.10 percent, or 14.37 points to 14,450.64, and property declined 0.82 percent, or 20.37 points to 2,451.82.
Among the actively traded stocks that fell were Philippine Long Distance Telephone Co., Bank of the Philippine Islands, BDO Unibank, SM Prime Holdings, Alliance Global Group, Metropolitan Bank and Trust Co., and JG Summit Holdings.
Despite the market fall, advancers outnumbered decliners, 79 to 77, while 45 issues were unchanged. Value turnover reached P8.2 billion, on 1.4 billion shares that changed hands.
On Thursday, the PSEi climbed 60.68 points or 0.94 percent to 6,516.82 points, while the broader all-shares index advanced 29.15 points or 0.75 percent to 3,910.63.