Profit taking snaps 2-day stock rally

MANILA, Philippines — The stock market took a breather yesterday, losing 85.54 points, or 1.09 percent, to close at 7,702.12 due mainly to profit taking.

The rest of the indices also took the cue, finishing in negative zone as well.

The broader All Shares gauge was down 37.80 points, or 0.80 percent, to finish at 4,634.17.

Total value turnover, meanwhile, was thin as well at P6.032 billion and market breadth was negative, 118 to 69.

On the other hand, 44 issues were left unchanged.

Piper Chaucer Tan of Philstocks Financials said “the two-day rally backed by heavy foreign buying ended due to profit taking at 7,900 levels.”

Gio Perez of Papa Securites said profit taking continued in the market as the PSEi dropped 85.54 points, or 1.09 percent, to close at 7,702.12.

“Volume was noticeably lighter at only P6 billion versus Monday’s P8.4 billion. Net foreign buying also eased to only P152 million from over P1 billion the past two days,” Perez said.     

Meanwhile, the Philippine Stock Exchange index is expected to range from 7,750 and 8,400 this year, according to Philstocks Financials Inc.

“Prior to 2009, the longest winning streak (positive annual returns) of the PSEI ran at five – 2003 to 2007, interrupted by troubles that beset the US subprime mortgage market and the brewing of the European debt dilemma. While the years 2015 and 2016 registered losses, these were miniscule in relation to the advance that preceded it.  All things considered, we initially peg our PSEI range at between 7,750 and 8,400,” Philstocks Financials head of research Justino Calaycay said.