Main price index continues to decline as investors take profit

The local stock barometer slipped for the third session in a row Monday, bucking the upswing across most regional markets as investors locked up gains after last week’s China state visit-inspired rally.

The main-share Philippine Stock Exchange index (PSEi) lost 40.91 points or 0.53 percent to close at 7,609.31.

Manny Cruz, chief strategist at Asiasec Equities, said in an interview that the market had been weighed down by some modest foreign selling amounting to P107 million alongside profit-taking from last week’s two-day rally.

During the historic state visit to China, President Duterte repaired bilateral ties with China and came home with around $24 billion in investment and financing pledges.

“Now, the market is consolidating in the absence of fresh developments. Investors are awaiting third-quarter earnings,” Cruz said.

Asked whether Mr. Duterte’s comment on “separation” from the US had affected investor sentiment, Cruz said the market was now getting used to such kind of rhetoric from Mr. Duterte. “I think investors are looking for story lines for the longer term,” he said.

The holding firm counter was the most battered sub-index for the day, declining by 1 percent, while the financial, services and mining/oil counters also slipped. On the other hand, the industrial and property counters firmed up.

Total value turnover for the day was P4.7 billion. There were 75 advancers, which were edged out by 94 decliners, while 57 stocks were unchanged.

GT Capital fell by more than 3 percent while Metrobank was also down by over 2 percent. SMIC, JG Summit, PLDT, Globe and Security Bank all slipped.