Philippine stocks end lower as profit-taking continues

MANILA, Philippines—Most local stock prices tumbled further on Wednesday, dragging the main index below the 4,700-mark, as investors continued to pocket gains after the main index hit fresh highs last week.

The main-share Philippine Stock Exchange index shed 43.86 points, or 0.93 percent, to 4,670.49.

“Many stocks are overbought so this profit-taking may continue in the next few days,” said Asiasec Equities chief strategist Manny Cruz.

Cruz said the PSEi’s support levels are seen at 4,660, 4,630 and 4,589.

“After a strong run-up in one month, there’s usually a breather,” said Eagle Equities president Joseph Roxas, adding that aside from investors who were on Lunar Year turnover holiday, value

turnover might be thinning because more people were starting to watch the impeachment trial against Chief Justice Renato Corona.

Though the hearings have no impact so far on sentiment, he said it was possible that it could reduce the volume of trades.

On Wednesday, about P4.97 billion worth of stocks changed hands at the local bourse. There were 80 advancers, which were narrowly outnumbered by 89 decliners, while 43 stocks were unchanged.

Meanwhile, shares of GMA 7 continued to surge on persistent rumors that the group of businessman Manuel V. Pangilinan was hatching a deal to take over the company at a hefty premium to market prices. A PLDT spokesperson has denied the rumors.

Originally posted at 04:33 pm | Wednesday, January 25, 2012