Index plunges on massive profit taking

MANILA, Philippines - The local stock market kicked off the week on a sour note behind a massive profit taking.

The Philippine Stock Exchange index plummeted 1.26 percent or 88.67 points to close at 6,979.06, while the broader All Shares index followed the trend as it lost 31.66 points to settle at 4,222.62.

Analysts said yesterday’s selling spree was in line with concerns over a potential US interest rate hike next month.

All local counters finished in the red, with property, holding, and mining and oil suffering more than one percent declines.

Value turnover was thin as it stood at the P5.67 billion level.

Advancers, however, managed to upset decliners, 88 to 86, while 49 stocks did not change.

“Foreign funds negative flow should dissipate somewhat – even as the main driver for these funds rest more on externalities (US economy, Fed rate action) than domestic issues,” A&A Securities marketing and research head Justino Calaycay Jr. said.

Asian shares were on the defensive yesterday, undermined by fears that the strength in the US dollar and rising US bond yields since Donald Trump’s election to president could accelerate fund outflows from the region back to US markets.

Asian markets were steady to slightly lower, with Hong Kong’s Hang Seng flat, Australian shares down 0.2 percent and South Korea’s Kospi falling 0.3 percent.