Bourse ends 6-day run on profit-taking

The local stock barometer ended its six-day run-up on Tuesday as investors pocketed recent gains as a number of blue chips reached overbought levels.

Shares of newly listed Converge ICT further dived on concerns about rich valuations and secondary shares that might be unloaded by private equity firm Warburg. Its shares tanked by another 17.14 percent to close at P13.92 apiece.

The main-share Philippine Stock Exchange index (PSEi) pulled back by 76.11 points or 1.17 percent to close at 6,415.08.

“Hesitation could step in place for the near term, substituting for the market’s euphoric attitude the past week especially with indicators already overheated and global headlines likely dampening regional sentiment,” local stockbrokerage Papa Securities said.

The relative strength index (RSI) of the PSEi was now “extremely overbought,” the brokerage said, adding that heavyweights SM Investments, SM Prime, Ayala Land and Ayala Corp. all had overbought RSIs as well.

Despite the PSEi’s decline, foreign funds trickled into the market for the fifth straight session. There was net foreign buying worth P103.54 million.

All counters fell, led by the financial, holding firm and property, which all lost more than 1 percent

LTG fell by 4.6 percent while BDO and Puregold both lost more than 3 percent.

SM Prime and GT Capital declined by more than 2 percent while Jollibee, SM Investments and URC all slipped by over 1 percent. Ayala Corp shed 0.78 percent.

On the other hand, PLDT, Globe Telecom, ICTSI and BPI all gained less than 1 percent. INQ