Philippine stocks took a pause after breaking through records during five consecutive days of upbeat trading, as investors finally decided to take profits.
Analysts believe that the correction in the market was a healthy pause since investors are only cashing-in gains after the index soared to new records.
Astro del Castillo, First Grade Finance Inc. managing director, said in a telephone interview that the market declined from profit-taking.
“This correction is healthy for the market given that it’s been going up consistently for the past few days,” he said, adding that for today, the market may consolidate further.
Jonas Ravelas, chief market strategist of BDO Unibank Inc., said in a text message that investors took cue from a strong rally before finally taking in some profit from the bullish market.
The Philippine Stock Exchange index (PSEi) snapped after a five-day run, losing 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.
Each sectors also registered significant losses with mining and oil posting the largest decline, falling 3.33 percent, or 620.98 points to 18,032.95, followed by industrial, which went down 152.50 points to 11,009.05, or by 1.37 percent.
Financials fell 1.27 percent, or 24.41 points to 1,893.42, while services erased 25.36 points, or 1.17 percent to 2,136.05. Holding dipped 1.10 percent, or 73.38 points to 6,573.08, while property lost 0.69 percent, or 21.01 points to 3,024.99.
Decliners dominated advancers, 137 to 44, while 34 shares were unchanged.
The most actively traded stocks, which were mostly down as well, were SM Investments Corp., Metropolitan Bank and Trust Co., Megaworld Corp., Alliance Global Group Inc., Metro Pacific Investments Corp., LT Group Inc., Ayala Land Inc., Ayala Corp., among others.
On Wednesday, the PSEi broke through the 7,400-point territory before ending with its 31st record, as upbeat market fundamentals kept luring more investors to invest in listed shares.
The benchmark index further gained 78.74 points toward 7,392.20 at the end of Wednesday’s trading session. This after it posted a new intraday high of 7,403.65 in the afternoon.
Madelaine B. Miraflor