Index wipes out gains as selling pressure picks up

MANILA, Philippines — Investors cashed in on gains from the market’s recent runup, dragging the main index back below the psychological 6,000 level.

The benchmark Philippine Stock Exchange index (PSEi) slipped to 5,946.61, down 71.59 points or 1.19 percent.

Likewise, the broader All Shares index slashed 25.76 points or 0.72 percent to finish at 3,565.81.

Most of the other gauges finished in the red except for the mining and oil counter. .

A total of P5.36 billion worth of shares changed hands, with 97 decliners, 87 advancers and 52 unchanged issues.

“The PSEi tumbled back to the 5,900 level. The local market was again not able to sustain trading above the 6,000 mark as the heavyweights that lifted the index the previous session were the top decliners for (yesterday’s trading),” AB Capital Securities Inc. said in a market commentary.

“The PSEi ended lower, wiping out its gains since the beginning of the week as selling pressure picks up. Losses were felt across the board as investors reduce risks while monitoring the pace of the economy’s recovery. Although the general sentiment has improved since economic activity picked up, investors remain cautious to avoid ‘jumping the gun’ similar to what we saw back in June when the market rallied too far, too fast. The market’s current movement with less volatility creates a better environment for investors,” Chris Mangun of AAA Southeast Equities added.