Stocks stay in decline due to profit-taking

MANILA, Philippines — Stocks extended their losses to a third straight session, with the main benchmark index dropping 115.58 points, or 1.73 percent, to 6,557.89 on continued profit-taking. But analysts noted that a bottom might soon be approaching.

For the Philippine Stock Exchange index, Wednesday’s decline represented a drop of more than 11 percent since its record high on May 15. The broader all-shares index also declined 1.47 percent to 4,067.24. All sub-indices closed in the red, led by the property sector, which fell 3.14 percent.

“We think a 10-percent drop is still a correction, but as we approach 20 percent [ decline] it becomes bear market territory,” Joseph Roxas, president of stock brokerage firm Eagle Equities Inc., said in a phone interview. He said technical indicators were pointing to a “reversal.”

“The charts look like it is bottoming out. At least we are near what I would call a tradable rally,” Roxas said. What this means is that investors who were once wary of buying Philippine stocks during the rally that brought year-to-date gains to more than 25 percent last month may do well to start looking for bargains.

“For those who missed the market, there might be a chance to get into stocks that now look cheaper. When it was over 7,000 it was hard to find anything cheap,” Roxas said.

As for those still invested in the market, he said, “I think they will be able to get out at higher prices than today.”