• PH stocks retreat on profit-taking, Dow losses


    LOCAL equities fell back on Tuesday as investors booked profits from the market’s recent rally which saw the index climbing to near record highs on Monday, with losses in the US and European markets overnight also affecting sentiment.

    After breaching 7,300 points on Monday, the Philippine Stock Exchange index (PSEi) went back to the 7,200 territory on Tuesday, ending down 61.27 points or 0.84 percent at 7,253.67, while the All Shares declined 38.05 points or 0.88 percent to 4,280.81.

    April Lynn Tan, head of research at online brokerage firm COL Financial Group Inc., said that the market was mainly down on profit taking.

    “It’s just a correction. There is no market-moving news today,” Tan said, adding that the profit-taking was expected because the market “has been going up quite significantly for the past few days.”

    “Last night the US markets were also down, so that was also a factor,” she added.

    Justino Calaycay Jr. of Accord Capital Equities Corp.’s Justino Calaycay Jr. agreed with Tan’s view, saying that local investors opted to sell after US equities snapped a five-week rally.

    “Investors made an early rush for the exits to protect their profits following a snap of a five-week, record-setting run in US stocks overnight,” Calaycay said.

    He said that the PSEi also followed the lead of Asian markets.

    “As the region’s market headed south deeper into the trading day, so did the local bourse. Investors were unable to grasp at anything strongly positive to make a quick turn after liquidating their positions,” Calaycay said.

    Regional markets were mostly lower weighed down by a weak yen, Hong Kong and South Korean markets on holiday, and Mainland China’s markets just returning from a holiday.

    Overnight, the Dow Jones declined 25.94 points and the S&P 500 fell 6.17 points while the tech-heavy Nasdaq was up 9.39 points. Calaycay said US and European markets may extend their weakness in Tuesday’s trading and into the near future.

    On the local bourse, losses were felt across the board led by properties, which fell 64.87 points or 2.31 percent to 2,746.70, while industrials went down 108.11 points or 0.96 percent to 11,141.92.

    Financials dipped by 1.48 points or 0.09 percent to 1,679.28, holding firms lost 26.92 points or 0.42 percent to 6,382.27, services slipped 18.61 points or 0.82 percent to 2,244.86, and mining and oil fell 38.68 points or 0.21 percent to 18,006.63.

    Tuesday’s biggest loser was Philippine Long Distance Telephone Co. (PLDT). Tan said investors cashed in their gains on PLDT which had been rising even ahead of the MSCI Philippines index rebalancing which took effect on September 1.

    Aside from PLDT, Tuesday’s top-traded stocks were all decliners, including Puregold Price Club Inc., Ayala Land Inc., Alliance Global Group Inc., Metropolitan Bank and Trust Co., Manila Electric Co., Ayala Corp., BDO Unibank Inc., Universal Robina Corp. and Cosco Capital Inc.

    Volume traded was 1.55 billion shares worth P8.627 billion.
    Decliners outnumbered advancers 117 to 62, while 47 shares were flat.

    The PSEi closed at 7,314.94 on Monday, up 0.71 percent or 51.36 points, after hitting an intraday high of 7,333.14, while the wider All Shares was up 28.50 points or 0.66 percent at 4,318.86.


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