Index plunges as profit taking prevails

MANILA, Philippines - The stock market ended its winning streak yesterday as profit taking prevailed, analysts said.

“The market just took a breather after several days of run up. Investors cash in their gains opting to sell their blue chips. Expect market to consolidate in a downward bias for several days,” said Astro del Castillo, managing director of First Grade Finance Inc.

The benchmark Philippine Stock Exchange index (PSEi) plunged 186.14 points, or 2.41 percent, as bargain hunting prevailed yesterday.

The broader All Shares index declined 73.22 points or 1.59 percent.

In terms of the sectoral indexes, most of the counters except for the mining and oil sectors closed in negative territory.

The biggest decliners were the holding firms, financials and the property sectors.

Total value turnover reached P6.33 billion. Decliners outnumbered advancers, 122 to 74, while 47 stocks were left unchanged.

Justino Calaycay of A&A Securities also attributed yesterday’s market decline to risks factors for the much-awaited US Federal Reserve meeting.

The past days, investors have been cheering the latest comments of US Fed chair Janet Yellen.

Yellen said “new questions about the economic outlook have been raised by recent labor market data,” indicating that there may be no move this month.

“Is the markedly reduced pace of hiring in April or May a harbinger of a persistent slowdown in the broader economy. Or will monthly payroll gains move up toward the solid pace they maintained earlier this year and in 2015?” Yellen said.