Stocks down on profit-taking

Most local stocks slipped on Tuesday as investors locked up gains and observed caution over the fiscal debate in the United States.

The main-share Philippine Stock Exchange index (PSEi) shed 16.56 points or 0.26 percent to close at 6,461.38.

Value turnover was thin at P6.6 billion. There were 56 advancers, which were overshadowed by 83 decliners, while 43 stocks were unchanged.

“We expect the market to continue to take profit at this stage. Most of the regional markets are also falling prey to profit-taking,” said Manny Cruz, chief strategist at Asiasec Equities Inc.

After the US Federal Reserve’s surprise decision to maintain its $85-billion monthly monetary stimulus, Cruz said the next battle that markets were bracing for would be the proposed increase in the US budget.

Last week, the US Congress agreed to fund the federal government through mid-December and curb funding for President Obama’s healthcare program. The House of Representatives is thus pitted against the Executive and the Senate.

“Whenever there’s uncertainty, people are opting to hold on to cash or take profit, so we expect the market to test 6,410,” Cruz said, adding that 6,330 might offer a stronger support.

The day’s biggest index laggers were Universal Robina Corp. (-3 percent),

Robinsons Land (-2.78 percent) and LT Group (-2.47 percent). Globe Telecom and Alliance Global Inc. also fell by more than 1 percent while PLDT, Megaworld, Bloomberry, Metrobank and Manila Water also ended lower.

On the other hand, SMC shares were up 5.57 percent as the conglomerate entered discussions to sell its remaining stake in Meralco. Petron was likewise up 1.74 percent. Doris C. Dumlao