Profit-taking sends PSEi below 7,400

The bourse retreated below 7,400 on Wednesday after its four-session rally toward the bull territory pushed traders to book profits.

The Philippine Stock Exchange Index (PSEi) shed 0.94 percent, or 69.59 points, to 7,362.62. The broader All Shares Index was down by 0.60 percent, or 23.86 points, to 3,939.64. A total of 1.07 billion shares worth P8.05 billion changed hands.

The market’s decline came after entering a 31-month high as the Bangko Sentral ng Pilipinas announced a lower cash buffer requirement for banks.

The PSEi has so far increased by 20 percent from its most recent low in June, although analysts warned of short-term profit-taking. Banks booked the steepest fall at 2.02 percent. —Meg J. Adonis