Local stocks pulled back Tuesday as investors pocketed gains after a dizzying climb to new highs above 7,100.
The main-share Philippine Stock Exchange index gave up 138.12 points or 1.94 percent to close at 6,982.36. This was after rallying on Monday by 2.35 percent to an all-time high of 7,120.48.
Across the region, stock markets were also mostly weaker as investors were unnerved by indications of weak China factory output in April.
At the local market, all counters slumped on Tuesday led by holding firms (-3.22 percent). Value turnover amounted to P11.82 billion. There were 103 decliners that outnumbered 75 advancers while 33 stocks were unchanged.
“The over-valuation of Philippine stocks is attracting more and more sellers who believe that current price-to-earnings ratios of index stocks are not sustainable. Expect sellers to gravitate to—or switch to—non-index stocks, which will likewise benefit from a growing economy and falling interest rates,” said Eduardo Banaag Jr., first vice president and equity fund manager of Philam Life. Doris C. Dumlao