Stocks down on profit-taking

MANILA, Philippines—The local stocks index on Tuesday pulled back from a new record high but stayed afloat the 4,900 mark while investors reassessed recent gains.

The Philippine Stock Exchange shed 42.9 points, or 0.87 percent, to finish at 4,900.94 as investors pocketed gains from blue chips while some shifted to second-liner stocks.

All counters closed in the red except for the holding firm sub-index. On the other hand, the property and mining/oil took the brunt of the day’s downturn, respectively declining by 2.76 percent and 2.1 percent.

Profit-taking pressures for the day were likewise precipitated by a sluggish regional sentiment. Investors fretted more about pricey equities instead of being elated by a fresh $172-billion second bailout deal for Greece.

“I’m cheering this drift down. Money is still flowing into the Philippines. Investors must be bold enough to buy these dips,” said First Metro Asset Management Inc. president Gus Cosio.

Value turnover for the day amounted to P8.54 billion. There were 79 advancers and 97 decliners while 36 stocks were unchanged.

The main index was weighed down by PLDT, Metrobank, EDC, Ayala Land, Cebu Air, BPI, Aboitiz Power, SM Investments and Ayala Corp. Non-index Petron likewise ended lower.

But there were many non-index stocks that gained for the day in heavy volume, suggesting that some investors had sold out of expensive blue chips to look at other stocks. Security Bank, Philodrill, PNB, Dizon, Oriental Peninsula, Puregold and PSE benefited from the fund rotation.

Among the index stocks, DMCI and ICTSI defied the day’s downturn.—Doris C. Dumlao