Weak reg’l markets drag down Phl stocks

MANILA, Philippines - Declines in global and regional markets rubbed off on local equities, which was also dragged down by profit taking for the second straight day.

The Philippine Stock Exchange index dropped 0.46 percent or 31.62 points to 6,817.71, while the broader all shares index eased 0.65 percent or 26.72 points to close at 4,086.08.

“The market corrected along with the US but not as bad because we closed 30 points better than the (intraday) low,” Miguel A. Agarao, an analyst at Wealth Securities Inc., said in a phone interview. The bellwether index hit an intraday low of 6,787.67 yesterday.

DA Market Securities said the benchmark index, riddled by profit taking, retreated as it continued to react to the 6,900 resistance.

On Thursday, small cap stocks led the retreat in Wall Street. The Dow Jones industrial average lost 1.01 percent or 167.16 points to end at 16,446.81 while the broader Standard & Poor’s 500 index shed 0.94 percent or 17.68 points to close at 1,870.85.

Asian stocks were also in the red, paced by Japan’s Nikkei 225 that sank 1.41 percent or 201.62 points to 14,096.59 given the stronger yen that negatively affected export-oriented industries.

Agarao said the slight decline in local stocks show the resilience of the country compared with its neighbors.

Locally, most counters ended in negative territory, led by the property sector that slipped 1.18 percent or 32.47 points to 2,721.79. But the financial sector bucked the trend as it rose 0.33 percent or 5.27 points to 1,606.15.