The local stock market ended its eight-day winning streak in the first trading session for the week, succumbing to a correction from profit taking.
The Philippine Stock Exchange index (PSEi) sunk on the first trading day of the week, losing 1.77 percent, or 109.89 points to 6,081.61, while the broader all-shares index shed 1.52 percent, or 57.02 points to 3,691.75.
“Local stocks snapped an eight-session run as investors remained unconvinced that the pace of global recovery is on an even pace,” Jun Calaycay, Accord Capital Equities Corp. analyst, said, citing that the wider Asian region retreated for a third consecutive day with steep losses in almost half a year, while US equities closed
last week’s trade on a sour note.
He further said that investors may also be “bracing for the release of fourth quarter GDP [gross domestic data].”
Also, all the sectoral indices sustained significant losses.
Holding firms had the largest decline, falling by 2.41 percent, or 135.32 points to 5,473.79, followed by financials, which plummeted by 1.60 percent, or 24.54 points to 1,507.96.
Industrial retreated by 1.56 percent, or 142.06 points to 8,976.06, and property slid by 1.34 percent, or 31.37 points to 2,308.21. Services also went down, by 1.28 percent, or 24.38 points to 1,883.32, while mining and oil shed 0.96 percent, or 136.40 points to 14,019.18.
Total value turnover stood lower at P6.8 billion with losers beating gainers, 139 to 26, while 39 issues were unchanged.
Some of the top losers on Monday were Ayala Land Inc., SM Investments Corp., BDO Unibank Inc., Metropolitan Bank and Trust Co., Robinsons Land Corp., Metro Pacific Investments Corp., Ayala Corp., Aboitiz Power Corp. and DMCI Holdings Inc.
An analyst earlier said that a correction may eventually occur this week, as investors may cash in their gains because the market sustained a positive mood last week.