PSEi backtracks as investors take profits

The local stock barometer slipped back below the 6,800 barrier on Thursday as investors pocketed gains from recent rallies.

The Philippine Stock Exchange index (PSEi) shed 49.82 points, or 0.73 percent, to close at 6,791.87, while regional markets traded with mixed sentiment.

After the rally that allowed the main index to breach the 6,800 resistance level earlier this week, Papa Securities said the PSEi could already be overheating.

Papa Securities noted technical reading based on relative strength index had hit overbought levels and volume had been declining relative to the previous days.

As such, the local stock brokerage noted it was wise to take some near-term profits.

“[The] Support [level] that we would be confident to hold and re-enter once again would be at the 200-day moving average at the 6,600 level,” the brokerage said.

The market was dragged down most by the property counter, which lost 1.25 percent.

The financial, holding firm and services counters all shed less than 1 percent.

On the other hand, the mining/oil counter advanced by 2.39 percent while the industrial counter added less than 1 percent.

Value turnover for the day amounted to P18.78 billion. Domestic investors were the ones who mostly cashed in from the market while foreign investors were net buyers to the tune of P1.89 billion.

There were 114 advancers that edged out 86 decliners, while 51 stocks were unchanged.

Aboitiz Power declined by 2.14 percent, while Ayala Land, BDO, Globe, SM Prime, Ayala Corp. and JG Summit all declined by over 1 percent.

ICTSI, AGI, SM Investments and Puregold all shed less than 1 percent.

Outside the PSEi, newly listed Monde Nissin declined by 2.82 percent. It was the day’s most actively traded company. —Doris Dumlao-Abadilla