Stocks down on profit-taking
THE LOCAL stock barometer pulled back by 1 percent yesterday as a six-day run-up spurred profit-taking while jitters on the US Federal Reserve’s future interest rate increases muted trading across the region.
The main index was also weighed down by the sharp decline in two large companies—Semirara and DMCI—which respectively lost 13.6 percent and 7.7 percent after last weekend’s accident at the Panian mine, which killed at least seven miners. Two more are still mining as of press time after the collapse of a portion of the open-pit mine.
The Philippine Stock Exchange index (PSEi) lost 75.96 points to close at 7,541.17.
The mining/oil index slumped by 6.25 percent due to the freefall of Semirara and its parent firm DMCI. The industrial and holding firms also weighed down the index.
Total value turnover amounted to P12.75 billion. There were 68 advancers, which were outnumbered by 92 decliners, while 52 stocks were unchanged.
Only the services counter was modestly up.
Article continues after this advertisementURC also weighed down the index, declining by 2.2 percent, while BDO, Jollibee, Metrobank and SMIC all fell more than 1 percent.
Article continues after this advertisementAC, GTCAP, ALI and Bloom also faltered.
On the other hand, Globe, PLDT and JG Summit firmed up. Other notable gainers outside the PSEi were gaming stock Melco (+6.78 percent) and property developer DoubleDragon (+3.24 percent).
Across the region, sentiment was sluggish as investors factored in the imminent increase in interest rates from the US Fed. As jitters over debt-strapped Greece and China’s stock market slump eased, markets again took their cue from the US Fed.
Regina Capital managing director Luis Gerardo Limlingan said that only a successful breakout of the key resistance level at 7,631 would trigger a “buy” condition and would support a run-up to 7,700. Doris Dumlao-Abadilla
