Stock market falls on extended profit-taking

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The local stock market ended the week by falling back to the 7,200-point territory amid continued profit-taking among investors.

The Philippine Stock Exchange index (PSEi) declined further on Friday, falling 31.07 points, or 0.43 percent to 7,279.87, while the broader all-shares index slipped 0.36 percent, or 16.26 points to 4,496.21.

“The market was down because of the profit-taking from investors after a strong rally.

Strong support at 7,100-mark. If this gives way, we could see further weakness toward 6,850 to 7,000 levels,” said Jonathan Ravelas, BDO Unibank Inc. chief market strategist, in a text message.


Freya Natividad, analyst at online brokerage 2TradeAsia.com, also said that the market went down because some investors cashed in on gains anew.

“Others are slightly or gradually accumulating portfolio for long term. The correction is still healthy in order for the index to gather enough strength to push the local market to a higher range,” she said. “It’s more of a profit-taking. Some also took note of the overseas trends,” Natividad added.

Overnight, the Dow Jones also went down as well as Nasdaq.

Among all the sectors, the financials counter was the only one that managed to end in the green, inching up slightly by 0.52 points, or 0.03 percent to 1,893.94. The rest of the sectors were down.

Natividad said that even though financials went up, there were still more supply pressures to test 7,300-point zone.

Property registered the largest loss, falling 1.46 percent, or 44.18 points to end at 2,980.81, while mining and oil was down 1.91 percent, or 344.69 points to 17,688.26.

Services went down anew, losing 13.05 points, or 0.61 percent to 2,123, while holding firms decreased 0.29 percent, or 18.80 points to 6,554.28. Industrial also erased 17.61 points, or 0.16 percent to 10,991.44. Decliners dominated advancers, 101 to 65, while 44 shares were unchanged.

On Thursday, Philippine stocks retreated after breaking through records during five consecutive days of upbeat trading.

The PSEi snapped by 81.26 points to 7,310.94, or 1.10 percent, while the broader all-shares index went down 1.20 percent, or 54.61 points to 4,512.42.

Madelaine B. Miraflor

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