Profit taking tempers market’s early gains

MANILA, Philippines - The local benchmark index re-tested the 6,900 resistance level yesterday before profit taking in the afternoon session tempered gains.

The Philippine Stock Exchange index inched up 0.17 percent or 11.83 points to close at 6,882.73, while the broader all shares index dropped 0.03 percent or 1.35 points to 4,110.62. The bellwether index hit an intraday high of 6,908.59 in the morning session before late selling trimmed the gains.

“It goes to show that 6,900 is really the resistance level. Investors remain cautious because of valuation issues,” Astro C. del Castillo, managing director of brokerage firm First Grade Holdings Inc., said in a phone interview.

“The market tested the resistance level of 6,900 before selling pressure came in and trimmed the day’s advance,” said Gab Aguila, an analyst at DA Market Securities.

However, the PSEi’s continued ascent proves the local market’s resilience to regional dampeners like the martial law in Thailand.

On Monday, Wall Street rose anew, buoyed by higher share prices of biotech and internet stocks. The Dow Jones industrial average gained 0.12 percent or 20.55 points to close at 16,511.86, while the broader Standard & Poor’s 500 index added 0.38 percent or 7.22 points to 1,885.08.

At home, almost all counters were in the green, led by the industrial firms that advanced 0.41 percent or 42.36 points to finish at 10,433.43. But the service sector eased 0.04 percent or 0.88 points to 2,048.09.

Turnover value climbed to P10.41 billion from P8.17 billion on Monday. Decliners outplayed advancer, 100 to 77, while 39 stocks did not change.

Most active stocks closed higher, led by Metrobank (+1.13 percent) while Coal Asia Holdings Inc. rallied 35.59 percent after securing an environmental clearance for its Davao coal mine. But investors continued dumping LT Group (-4.18 percent) shares following weak first quarter earnings.