Profit taking continues to dampen Phl stocks

MANILA, Philippines - Profit taking pulled down the local benchmark index for the second straight session yesterday as investors opted to cash in their gains due to the absence of domestic leads.

The Philippine Stock Exchange index (PSEi) declined 0.11 percent or 8.24 points to 7,271.62, while the broader all shares index fell 0.20 percent or 8.72 points to 4,304.13.

“Investors continued to take profit as the market in the past few days attempted to breach the 7,300-level but failed,” said Joyce Ramos, AB Capital Securities Inc. analyst.

Ramos added that Philippine stocks also followed weak leads from overseas, resulting in the local stock barometer’s negative finish for the second consecutive day.

The three main index in Wall Street finished in the negative territory with the Nasdaq suffering the biggest drop of 1.14 percent or 52.10 points.

Locally, only two counters ended in the positive territory led by property firms which gained 0.89 percent or 24.61 points.

The mining and oil firms suffered the biggest blow, losing 1.41 percent or 253.62 points.

Market breadth was negative, as decliners crushed advancers, 102 to 73, while 49 stocks did not change hands.  Value turnover decreased to P8.37 billion from P9.66 billion the previous day.

“In the coming days, trading is seen to move sideways unless there will be significant domestic and regional leads,” Ramos said.