Philippine market lower on profit taking
www.pse.com.ph photo
MANILA, Philippines—The local stock index hit a new intraday record peak, breaching 5,400 in early trade, but closed lower on Wednesday as lofty stock prices lured investors into profit taking.
The main-share Philippine Stock Exchange index dipped by 10.98 points, or 0.21 percent, to finish at 5,354.72. The index went as high as 5,403.16 within the first 30 minutes of trading, marking a new historic peak, but the index faltered thereafter as investors started pocketing gains.
“Correction is forthcoming. The PSEi is going up too fast,” said Ramon Garcia, president of stock brokerage RTG & Co. “It’s time for profit-taking by prudent and professional investors.”
“Profit taking is healthy. Without it, we cannot take the market higher,” said Gus Cosio, president of First Metro Asset Management Inc. “In spite of profit-taking in mid-trading session, Philippine stocks had a strong close. Stocks are passing from weak to strong hands.”
Most counters ended in the red except for the holding firms sub-index.
Turnover amounted to P6.08 billion. There were only 75 advancers versus 94 decliners while 34 stocks were unchanged.
Index stocks PLDT, Metrobank, Metro Pacific Investments, Meralco, SM Prime, BDO and EDC succumbed to profit-taking for the day. Shares of newly listed GT Capital also declined.
On the other hand, the day’s losses were tempered by the gains eked out by Manila Water, Megaworld, DMCI, SMIC, AP, URC, BPI and ALI. Joining the day’s gainers were Security Bank, Bloomberry and FLI.
In a shortened session Tuesday ahead of the Fourth of July holiday, the US Dow Jones Industrial Index gained 72.43 points, or 0.6 percent, following news of an increase in factory orders. Wall Street will be closed on July 4 (Wednesday night, Manila time) for the US Independence Day celebration.
