Share prices plunge on lack of catalysts

MANILA, Philippines — The stock market was off to a bad start this week as profit taking amid lack of catalysts pulled share prices downward.

The benchmark Philippine Stock Exchange index plunged by 1.14 percent or 76.78 points to close at 6,649.23 yesterday.

Also finishing in the negative territory was the broader All Shares index, which fell by 0.68 percent or 24.77 points as it settled at 3,605.33.

“Philippine shares succumbed to profit taking before the month end, as investors looked to cash in after July saw a substantial rise in the index. Funds are also gearing up for another economic data heavy week with more company earnings coming in as well,” Luis Limlingan of Regina Capital said.

Claire Alviar of Philstocks Financial said foreign investors weighed on the market, recording a net outflow of P500.43 million.

“Investors were waiting for the Federal Reserve meeting, which could influence Bangko Sentral ng Pilipinas’ decision regarding interest rates,” she said.

With the market’s resistance still pegged at 6,700 to 6,800, Alviar said it seemed the market is struggling to break and stay above this level.

Net market value turnover amounted to P4.68 billion.

All sectors were in the red, except for industrial, which eked out a 0.16 percent improvement.

Financials led the charge, surging by 2.65 percent, followed by mining and oil, which climbed by 1.18 percent.

Market breadth was negative as decliners pummeled decliners, 105 to 83, while 55 issues were unchanged.

ACEN recorded the largest gain among index members with 6.19 percent, while Bloomberry Resorts lost the most at 4.56 percent.