Shares slip on profit-taking

Filipino traders blow horns before the start of the first day of trading at the Philippine Stock Exchange at the financial district of Makati. AP

Philippine stocks on Friday dipped as investors decided to bag profits after it was reported that the economy beat growth expectations for the second quarter.

The benchmark Philippine Stock Exchange index lost 0.70 percent, or 49.81 points, to 7,050.89. The broader all-shares index also slipped by 0.85 percent, or 35.65 points, to 4,170.01.

Subsectors were mixed with financial, industrial and holdings companies closing in the red. On the other hand, services, mining and oil, and property posted gains.

Accord Capital Equities on Friday said in a report that shares ended a six-session rally on Aug. 28 after the government announced that the Philippine economy grew by 6.4 percent during the second quarter.

“With earnings and GDP already priced into share prices, investors will look to yet another possible source of encouragement or disappointment—August inflation,” Accord Capital said.

The report added that US stocks fell overnight, with the S&P500 dropping below 2,000 as crisis in the Ukraine and less-than-expected retail earnings deflated optimism from a better-than-estimated economic growth.

Data from the PSE showed that a total of 1.92 billion shares changed hands, valued at P32.55 billion. A total of 67 companies gained as 111 declined, while 44 firms closed unchanged.

Philippine Long Distance Telephone Co. led the list of the most actively traded stocks as it gained 1.83 percent to P3,450 a share.  Miguel R. Camus