Index reverses course as profit taking takes over

MANILA, Philippines — Any optimism that pushed the market past the 7,400 level on Wednesday disappeared yesterday as the market fell below the 7,400 level once again on profit taking.

The benchmark Philippine Stock Exchange index (PSEi) lost 63.50 points, or 0.85 percent, to end at 7,387.87, while the broader All Shares gauge shed 30.07 points, or 0.66 percent, to settle at 4,462.44.

 Most counters ended in negative territory except for the services index which was flat.

 Total value turnover was likewise thin at P3.688 billion. Market breadth was negative 117 to 72 wile 46 issues were left unchanged.

 Gio Perez, a trader at Papa Securities said profit taking prevailed yesterday.

 “Profit-taking took over today with the PSEi finally encountering resistance at its previous breakdown point — from the April to June trading range —  at the 7,460 to 7,500 levels. The index fell 63.50 points to close at 7,387.87,” Perez said.

Foreign investors likewise dumped shares.

As a result, net foreign selling notably escalated to its highest level for the week at P585 million. Ayala Corp., which lost three percent had the a net foreign selling of P112 million, but this was only second to Megawide which had a net foreign selling of P133 million. Megawide shares dropped 1.18 percent.