A two-day advance on the Philippine Stock Exchange (PSE) gave way to profit-taking on Wednesday after Wall Street fell overnight and an uptick in crude oil costs stirred concern over its impact on global consumer prices.
The benchmark Philippine Stock Exchange index (PSEi) lost 45.57 points or 0.58 percent to close at 7,873.64. The wider All Shares index shed 10.25 points or 0.23 percent to 4,541.98.
Grace Cerdenia, head of Research at online brokerage 2TradeAsia.com, said a two-day market rise of more than 200 points to the 7,900-point territory gave investors a chance to cash in their profits.
“Sober trading marked Wednesday’s trades following gains in the previous sessions. Part of the drag came from Wall Street’s sharp overnight retreat,” Cerdenia said.
On Tuesday (Wednesday Manila time), the US markets declined, pulling the Dow Jones Industrial Average down 0.79 percent or 142.20 points to 17,928.20; S&P 500 down 1.18 percent or 25.03 points to 2,089.46; and Nasdaq down 1.55 percent or 77.60 points to 4,939.33.
“Moreover, crude oil’s ascent past $60 per barrel cast some cloud on sentiment, pending confirmation of gains in the US economy,” Cerdenia added.
All sectors—except mining and oil, which gained 1.87 percent— dropped, including industrials, which dipped 0.77.
Actively sold stocks were SM Investments Corp., SM Prime Holdings Inc., BDO Unibank Inc., Bank of the Philippine Islands, Universal Robina Corp. and Philippine Long Distance Telephone Company. Top companies that were actively bought were Metropolitan Bank and Trust Company, Ayala Corp., Nickel Asia Corp. and GT Capital Holdings Inc.
Volume of trade reached 802.69 million, valued at P8.4 billion. Decliners outnumbered advancers 99 to 82, while 50 issues were unchanged.
On Tuesday, the PSEi rose 102.77 points or 1.31 percent to 7,919.21, while the broader All Shares index gained 54.84 points or 1.22 percent to 4,552.23.