Phl stocks succumb to profit taking

MANILA, Philippines - Steep valuations made local and global stocks succumb to profit taking ahead of the corporate earnings season.

The Philippine Stock Exchange index retreated 0.72 percent or 50.58 points to finish at 6,948.52, snapping a four-day winning streak that allowed the benchmark index to breach the 7,000 level during the trading session on Monday. The broader all shares index dropped 0.53 percent or 22.11 points to 4,158.21.

Freya Natividad, investment analyst at Papa Securities, said profit takers dictated the trading yesterday.

The local bourse also trailed the weakness in global markets, Natividad said.

All counters were in the red, paced by property firms that shed 1.04 percent or 27.73 points to close at 2,651.49 while mining and oil declined 1.07 percent or 177.42 points to 16,462.02.

As in the past few trading days, the local bourse followed the lead of Wall Street and Asian markets. On Monday, US stocks pulled back from record high levels as investors turned wary of high valuations while some opted to pocket gains.

The Dow Jones Industrial average eased 0.26 percent or 44.05 points to 17,024.21, while the broader Standard & Poor’s 500 index lost 0.39 percent or 7.79 points to finish at 1,977.65.

Asian markets, some of which are enjoying multi-year highs, also retreated yesterday. Japan’s Nikkei 225 fell 0.42 percent or 65.03 points to 15,314.41.

At home, investor participation dropped, with value turnover thinning to P6.28 billion from P8.31 billion on Monday.

Losers dominated advancers, 116 to 64, while 45 stocks did not change.