Profit taking ruled the stock market yesterday after more than a week’s winning streak .
After a series of all time highs — from its current record close of 7,689.91 on Friday — the benchmark stock index declined by 0.77 percent or 59.20 points to 7,630.71 while the All Shares index decreased by 0.54 percent or 24.24 points to 4,441.04.
Jonathan Ravelas, Banco de Oro chief market strategist, said that the market’s pause from all time record highs was driven by the Dow Jones’ steep drop of 252 points last Friday. S&P was down 26.26 points, and Nasdaq erased 48.17 points.
Edmund Lee, president and chief executive officer of Caylum Trading Institute, agreed that the market was pulled down by “the weak performance of the US markets.”
“You should expect profit taking in the coming days largely due to the market being overbought,” Lee said.
Ravelas said: “I continue to see the market to range between 7,600 to 7,800 levels. Should a lower inflation occur—and I am looking at 2.4 percent [for January]—this should be good for the market.”
The release of January inflation figures is scheduled on Thursday, February 5. The Bangko Sentral ng Pilipinas (BSP) is expecting inflation to “ease further to 1.8 percent to 2.7 percent on January amidst lower cost of food and oil prices.”
The financials index dropped by 1.28 percent. Most active companies were in the red, except Alliance Global Group Inc. that increased 1.80 percent or 45 cents to close P25.50 each. Top decliners included Universal Robina Corp., Global Ferronickel Holdings Inc., Philippine Long Distance Telephone Company and Metropolitan Bank and Trust Company, among others.
Total volume was at 2.74 billion shares, valued at P10.48 billion. Losers outnumbered gainers, 111 to 76, while the unchanged stood at 36.
On Friday, the main PSEi has rebounded to a record close from a one-day decline the
previous day on profit taking. It went up 0.95 percent or 72.61 points to 7,689.91 while the All Shares index also increased by 0.86 percent or 38.12 points to 4,465.28.
The Friday 7,689.91 close is the current all time high, and has beat the previous market record closing high of 7,661.18 on Wednesday, January 25.