PSEi yields to profit-taking

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PHILIPPINE shares retreated in Thursday trade due to profit-taking, ending a three-day winning streak.

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The benchmark PSEi lost 68.56 points or 0.86 percent to close at 7,904.34. The broader All Shares dropped 37.13 points or 0.78 percent to 4,738.83.

Ahead of President Rodrigo Duterte’s state of the nation address (SONA) on Monday, combined with the losses of telecom giant PLDT Inc. and other index components, as well as the depreciation of the peso, prompted the market to take profit from recent rises.

“It is part of the market consolidation as PLDT, in relation to the Labor department’s announcement to regularize their employees. PLDT dampens investors sentiment echoed to the other listed companies that are hiring contractual employees,” First Grade Holdings Managing Director Astro del Castillo said.

“Also, ahead of the ghost month [August], there are reports that several stocks will decline,” he added.
Harry Liu, president of Summit Securities Inc. said the day’s decline was “purely a technical behavior, in anticipation of the upcoming SONA, the softening of the peso.”

On Thursday, the Philippine peso recovered slightly to P50.88 per dollar after softening to P50.94 on Wednesday.

“So far, I’m expecting that the index will trade within the 7,800 to 8,000 range. And the second quarter earnings performance and the gross domestic product will determine market performance over the medium term,” IB Gimenez Securities Inc. research head Joylin Telagen said.

All indices, except the mining and oil, closed the session in the red led by holding firms (-1.30 percent), property (-1.18 percent), services (-0.48 percent), industrial (-0.42 percent), and financials (-0.15 percent).

SM Prime Holdings fell 2.75 percent, while Semirara Mining and Power Corp. gained 1.79 percent.

Over 2 billion issues, valued at P8.2 billion, changed hands. Decliners led gainers, 131 to 63, while 65 issues were unchanged.

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