Index continues drop on profit taking

MANILA, Philippines - Profit taking and the sharp drop in prices of blue chips involved in water utilities pushed the bellwether index lower for the second straight day.

The Philippine Stock Exchange index (PSEi) declined 1.01 percent or 62.37 points to close the week at 6,133.24. The broader all shares index slipped 0.78 percent or 29.51 points to 3,738.27.

“There’s still a lot of negative sentiments from the rate rebasing,” Miguel A. Agarao, an analyst at Wealth Securities Inc., said in a phone interview.

The Metropolitan Waterworks and Sewerage System Regulatory Office denied the petitions filed by Manila Water Co. Inc. and Maynilad Water Services Inc. to increase water distribution rates for the next five years.

Agarao said the slump in Manila Water (-14.52 percent) and Maynilad shareholder Metro Pacific Investments Corp. (-6.38 percent) accounted for the 23-point decline in PSEi.

Profit taking also weighed down the local bourse.

“Our market has been going up for about a week already pullbacks like these are normal,” Agarao said.

Markets abroad also took a breather, with Wall Street retreating primarily because of the mining sector.

The Dow Jones industrial average fell 0.17 percent or 25.96 points to 15,300.64 while the broader Standard & Poor’s 500 index lost 0.34 percent or 5.71 points to 1,683.42.