MANILA, Philippines - Philippine stocks started the week in negative territory--marking the fourth consecutive trading day of loss and dropping below the 5,700 mark – on broad-based profit taking.
The Philippine Stock Exchange index (PSEi) retreated by another 83.26 points or 1.46 percent to settle at 5,623,85.
Market breadth was negative with decliners outnumbering advancers 116 to 50, while 50 stocks were unchanged. A total of 2.9 billion stocks worth P9.42 billion changed hands.
All sectoral indices closed in negative territory, led by financials that declined by 32.26 points to 1,496.08. Property decreased 37.50 points to 2,205.51, while industrial slid 103.74 points to 8,643.74.
Among actively-traded stocks, Philippine National Bank fell by P4.70 to P88, while SM Investments Corp. went down by P28 to P816.
“The market continued to correct. We had some issues on valuation with the market being so pricey in comparison to historical standards. We are also one of the most expensive in the region, that’s a concern for some investors so they decided to lighten up,” said Jose Vistan of AB Capital Securities Inc.
Vistan said short-term traders have booked profits in the final week before Christmas as concerns of a fiscal cliff that threatens to drag the US economy into recession provide a cloud of uncertainty in the global markets.
The Dow Jones industrial average fell 35.71 points to close at 13,135.01 on Friday as disappointment mounted over the lack of progress in the budget negotiations between US President Barack Obama and House Speaker John Boehner to avoid the fiscal cliff.