The main-share Philippine Stock Exchange index shed 93.71 points, or 1.9 percent, to close at 4,799.29. The index last week soared to nearly 5,000 but failed to break out of this key resistance level.
All counters faltered but the sharpest losses were incurred by the holding firm, industrial and financial sub-indices, which respectively tumbled 3 percent, 2.2 percent and 1.8 percent.
Value turnover amounted to P7.16 billion. There were only 47 advancers, which were overwhelmed by 118 decliners while 32 stocks were unchanged.
Ma. Theresa Marcial-Javier, senior vice president and head of asset management and trust group at Bank of the Philippine Islands, said a correction was healthy for the stock market.
“Our overall view is we are bullish about the economy and the market, and I am sure many people will be delighted to see corrections like this as it is an opportunity to add to your position,” Marcial-Javier said.
Marcial-Javier said there was still a lot of cash invested in the stock market and with many investors re-rating the country, she noted that a secular bull run correction should be healthy.
Aboitiz stocks were among those that succumbed to heavy profit-taking after last week’s run-up that was triggered by a prospective merger-and-acquisition play on the group’s banking unit, Union Bank.