Stocks end lower on profit-taking

The Local stocks index closed flat yesterday, negating a strong performance in morning trade, as eurozone jitters induced profit-taking ahead of the weekend.

After a strong performance in morning trade, the main-share Philippine Stock Exchange index faltered toward the end of the session to close 0.48 point or 0.01 percent weaker at 4,893.

Despite ending in negative territory for the second straight session, the index was still ahead by 12.29 points or 0.2 percent because of its surge to new highs earlier during the week.

Trading was mixed across counters, with the property, services and mining/oil ending in the red and the financial, industrial and holding firms staying afloat. Value turnover amounted to P9.64 billion. There were 59 advancers, which were overwhelmed by 111 decliners, while 39 stocks were unchanged.

Reuben Mark Angeles, head of research at First Metro Securities Brokerage Corp., said in a research note that following Thursday’s sell-off when the main index neared the 5,000-mark, “emotionally driven” investors might indeed continue to sell.

“We would prefer to take advantage of such sell-offs as good opportunities to increase exposure. Global economic data are better now than they were in October 2011. And with most central banks creating money, we see higher equity prices and lower bond yields for the time being,” Angeles said.

Angeles said the PSEi’s drop after posting new all-time highs on Thursday was “overdone.” Based on fund flows data, he said there were more funds waiting to be invested in Philippine equities.

The main index was weighed down yesterday by EDC, Metrobank, PLDT, SM Investments, URC, DMCI, BDO and SM Prime Holdings.  The non-PSEi stocks that declined in heavy volume were Petron and Puregold.

Meanwhile, the PSEi’s losses were tempered by the gains of Aboitiz Power, Ayala Land and AEV. The Aboitiz stocks were fueled by a prospective merger and acquisition (M&A) play on its banking unit Union Bank of the Philippines, which was the day’s most actively traded stock. Union Bank rallied 17 percent to finish at P135 a share. Other banking stocks RCBC and PNB also rose in heavy trading.

Other notable gainers for the day were mining stocks Dizon and NiHao. Doris C. Dumlao