Profit taking snaps short market rally

MANILA, Philippines — The stock market’s recent highs have turned out to be shortlived as investors decided to take some profit, analysts said.

Thus, the benchmark Philippine Stock Exchange index (PSEi) backtracked and lost some momentum yesterday, closing 37.56 points lower at 7,766.47, while the broader All Share index lost 3.76 points, or 0.07 percent, to finish at 4,728.82.

All other gauges likewise were in the red, taking the cue from the main composite index.

Every sectoral index except for the holding firms closed in the red in yesterday’s session.

Total value turnover reached P7.217 billion. As expected, market breadth was negative, 122 to 76 amid the sell off. There were 54 issues that were unchanged.

Traders said yesterday’s trading performance was not totally unexpected as market investors decided to take profits after the PSEi ended in positive territory for two consecutive days.

On Thursday,  the index rallied and breached the 7,600 resistance level but technical indicators showed that yesterday’s trading would indeed be bearish.

Foreign selling prevailed, totaling P398.9 million compared to Thursday’s net foreign buying of P514.2 millon.