Stock market tumbles below 7,000 on profit taking

MANILA, Philippines — The stock market has fallen below the 7,000 mark anew as investors immediately cashed in on Monday’s gains.

The Philippine Stock Exchange index dropped yesterday to 6,980.02, 0.58 percent or 40.81 points lower than the previous day. The broader All Shares index also declined by 0.28 percent or 10.41 points to settle at 3,712.39.

AB Capital Securities said the market was pulled down by profit taking following Monday’s unexpected surge at the close.

Japeth Tantiangco, analyst at Philstocks Financial Inc., said investor sentiment was also dampened by inflation fears amid the newly implemented increase in fuel prices, and concerns over China’s COVID- stricken economy and its knock-on effects on the Philippine economy.

He said adding to the worries is the growing warnings over a possible rise in COVID cases in the country in the succeeding months.

“Philippine shares slid into the red as concerns about a global economic slowdown amid COVID outbreaks in China sent interest rates lower,” Luis Limlingan of Regina Capital, for his part, said.

Most indexes were down on Tuesday, led by holding firms which plunged by 1.49 percent, followed by financials which saw a 1.27 percent drop.

Property and industrial counters, meanwhile, went up by 0.88 percent and 0.51 percent, respectively.

Value turnover slightly thinned from the previous day at P4.11 billion.

Foreigners were net sellers with net outflows amounting to P312.19 million.

Market breadth was flat with 94 stocks advancing and 91 declining, while 48 issues were unchanged.

Asian shares were mostly higher Tuesday after US stocks stormed back from sharp losses to log strong gains.

Tokyo, Hong Kong, Seoul and Shanghai advanced while Sydney declined. Oil prices rose and U.S. futures also were higher.