Index retreats as profit takers swamp market

MANILA, Philippines - Philippine share prices tumbled yesterday as profit-takers overwhelmed the market.

The Philippine Stock Exchange index (PSEi) slipped 0.52 percent or 38.28 points to close at 7,286.85 while the all shares index also fell 0.19 percent or 8.03 points to 4,292.34.

The PSEi came from Monday’s fresh record high for the year, days leading to the government’s announcement of the country’s third quarter economic growth.

Analysts said the rise, however, proved to be short-lived as profit-taking quickly spoiled the market’s momentum.

“Slight profit-taking trickled in ahead of US markets’ Thanksgiving holiday,” said Jason Escartin, investment analyst at F. Yap Securities.

Local share prices bucked the growth seen in the US, with all indexes in Wall Street finishing in the positive territory led by the Nasdaq which gained 0.89 percent.

Locally, most counters were in the red except for mining and oil firms which managed to improve slightly by 0.04 percent or 5.95 points.

Industrial firms posted the biggest drop of 0.55 percent or 65.05 points.

Market breadth turned sour, although the result was close as decliners edged out advancers, 98 to 97, while 38 stocks were unchanged.

Value turnover ballooned to P15.88 billion from P7.06 billion the previous day.

“We commend the recent net foreign buying, on solid turnover. Focus might still be locked in similar stocks that fueled the rise, specifically those with solid prospects from regional expansion drive,” Escartin said.