Stocks cool down after hitting 2-yr high

MANILA, Philippines — The local stock market cooled down after a two-day hot streak that saw it soar to fresh two-year highs.

The benchmark Philippine Stock Exchange index finished yesterday’s session at 7,155.90, down by 0.27 percent or 19.46 points despite trading higher most of the day.

The broader All Shares index also finished in the negative territory, slipping by 0.06 percent or 2.21 points to 3,847.96.

Philstocks Financial research manager Japhet Tantiangco said last minute profit taking sent the local market lower.

“Investors booked gains following the bourse’s two-day rally,” he said.

Tantiangco said investors also took a cautious stance while waiting for the US Federal Reserve’s policy decision.

“Trading was somehow active with net value turnover posting P5.65 billion, higher than the year-to-date average of P5.04 billion. Foreigners were still net buyers with net inflows amounting to P773.87 million,” he said.

Sectoral gauges were a mixed bag, with mining and oil leading those in the green with a 1.83-percent jump.

The financials index, meanwhile, took the biggest plunge as it lost 0.66 percent.

Market breadth remained positive, however, as advancers crushed decliners, 125 to 68, while 60 issues were unchanged.

Nickel Asia posted the largest increase among the index members at 4.83 percent, while Monde Nissin registered the biggest drop at 2.68 percent.

Asian markets were mixed yesterday as traders tried to ascertain how big an expected US Fed interest rate cut would be.

While the US central bank is widely expected to cut borrowing costs for the first time since the start of the pandemic, the big question is whether officials will go for a bumper move before a series of smaller ones into the new year.