Stock market plunges as investors take profits

MANILA, Philippines — After five consecutive days of bargain hunting, the stock market went on a correction, sending the benchmark Philippine Stock Exchange index (PSEi) plunging by 101.32 points, or 1.30 percent, to close at 7,6272.

Likewise, the broader All Shares gauge lost 41.16 points, or 0.88 percent, to finish at 4,604.12.

All other indexes were likewise in the red, shedding big points in a sharp decline not seen in days.

The foreign buying slowed down after several days of nonstop buying spree.

Total value turnover reached P7.054 billion as decliners outpaced gainers, 130 to 63.

“Local shares were sold down after five consecutive days of bargain hunting, investors decided to take profit from issues that the had bought earlier,” said Luis Limlingan of Regina Capital.

Fund managers also stayed away ahead of the US Fed meeting.

“Funds also kept to cash ahead of the FOMC meeting which will occur tomorrow evening in the US. In addition there was added pressure when US stocks fell last night, led by ongoing weakness in the tech stocks, marked by a third straight session in the red, helped to push the tech-laced Nasdaq Composite Index to its lowest close in more than three weeks. European stocks fell from a six-week high Monday, with troubles surrounding the technology sector and global trade weighing on markets,” Limlingan said.

He added that on Monday, President Trump said he would meet with Iran’s leaders without preconditions to discuss a new deal related to the country’s nuclear program whenever they are ready, marking the latest potentially controversial invitation from the US leader.