Local share prices tumbled by almost a percent on Thursday as investors took advantage of the sharp gains of the previous two days following the successful national elections.
The benchmark Philippine Stock Exchange Index (PSEi) declined by 0.97 percent or 71.48 points to close at 7,325.04, while the broader All Shares dipped by 0.76 percent to 33.36 points to end at 4,354.95.
Victor Felix, equity analyst at AB Capital Securities Inc. said that stock market investors are merely reaping the gains they enjoyed over the past two days after the national elections.
“The RFI [relative strength index]jumped from 30 to almost 60 from that two-day trading. Thus, we saw profit taking today [Thursday],” Felix said.
He explained that following two consecutive days of robust performance for the stock market, it is only expected that investors would take advantage of their gains by selling some of its equity holdings to realize profits.
“We expect profit taking until tomorrow [Friday],” Victor said.
Trade was active with total value turnover reaching P8.58 billion. Losers outnumbered winners, 105 to 81, while 47 issues were unchanged.
All the sub-indices were in negative territory led by industrial firms, shedding 1.52 percent, and followed by the financials sector, which lost 1.30 percent.
Meanwhile, Astro del Castillo, president and managing director of First Grade Finance Inc., agreed with Felix that investors were simply taking advantage of their gains since Tuesday.
“This [stock market’s fall]is profit-taking after two consecutive days of rally, it is only normal for the market to correct,” del Castillo said.