Market snaps winning streak, tumbles on profit-taking

Stocks snapped a five-day upstreak and went back to their usual ways, with blue chips leading the sell-off across the board that nearly erased the gains the previous day.

The Phisix opened lower and steadily slid during the session, ending 21.6 points or 1.49 percent less to 1,426.05. The broader All-Shares index likewise slid back, shedding 8.56 points or 1.09 percent to 776.67.

Analysts said the mild rally until Wednesday had paved the way for the opportunity to take profits, ahead of the year-end window dressing by government financial institutions (GFIs) and big corporations.

While the ongoing impeachment trial at the Senate continued to discourage investors from playing the volatile equities market, the bourse also felt the shockwaves of the crumbling US markets which have sank to their lowest levels in nearly two years.

Gloom enveloped US stocks as the US Federal Reserve warned the other day of an economic slowdown, triggering a wide revaluation of prices that ripped the tech-heavy Nasdaq to a 21-month low and the Dow Jones and S&P benchmarks to their lowest close since October 1998.

There were only 18 advancers as against 44 decliners in yesterday’s trading, with the remaining 28 issues unchanged.

Turnover thinned down to P803.719 million, from an average of over P2 billion in the two prior days as the heavy trades in the unrestricted San Miguel "B" shares fell to an end. SMC B accounted for a mere P7.426 million of total deals with its price falling 50 centavos to P54.

Among the other index stocks that fell on profit taking were San Miguel A, PLDT, Ayala Corp., Ayala Land, Meralco B, SM Prime, Filinvest Land and Benpres Holdings.

Canadian insurance giants Sun Life and Manulife also fell moderately, dipping P5 and P15 to P1,180 and P1,405, respectively.

SMC’s liquor and juice subsidiary La Tondeña Distillers dropped P1.50 to P29.50 as the ex-date for the P0.375 cash dividend per share fell due yesterday.

Bank of the Philippine Islands also tumbled by P1.50 to P56.50 despite a similar declaration of a cash dividend of P0.80 per share subject to approval by the Bangko Sentral ng Pilipinas.

Equitable PCIBank retreated by P2.50 to P55.50 as the resignation of its chairman and close Presidential associate George Go sank in. The low-key banker, who along with the GFIs masterminded the takeover of PCI Bank last year, called it quits following the controversy on the mysterious Valhalla/Velarde bank account allegedly owned by President Estrada.