Market rally cut short by profit taking

MANILA, Philippines — The stock market closed the week in the red as profit-takers stepped in.

The Philippine Stock Exchange index slid by 0.23 percent or 14.74 points to settle at 6,492.75, snapping its two-day climb.

Also closing in the negative territory was the broader All Shares index, which declined by 0.20 percent or 6.88 points to 3,508.99.

“Investors turned into profit-takers using the CPI reading to sell on news and close positions to kick off the first week of the second half of 2024. The main bourse slipped below 6,500 after trading more at least half a percent up intraday,” Luis Limlingan of Regina Capital said.

Claire Alviar of Philstocks Financial said the local bourse failed to sustain its rally due to last minute profit taking following two consecutive days of gains.

She said the market mostly traded in the green as investors reacted positively to the June inflation rate, which slowed to 3.7 percent from the previous month and was near the lower end of the forecast of the Bangko Sentral ng Pilipinas.

“Since the inflation rate remains within the government’s target range of two to four percent, the likelihood of the BSP cutting interest rates at their upcoming meeting in August is increasing. However, sentiment was dampened by the national government’s outstanding debt reaching a record high,” Alviar said.

Total value turnover for the session stood at P4.24 billion.

Sectoral gauges were a mixed bag, with financials and property leading the way with increases of 0.22 and 0.21 percent, respectively.

Services took the biggest hit, losing 1.44 percent.

Market breadth was negative as decliners edged out advancers, 94 to 90, while 63 issues were unchanged.

Wilcon Depot posted the biggest gain at 1.33 percent, while ACEN had the largest loss at 2.61 percent.