Profit taking snaps PSEi’s 5-day upswing

MANILA, Philippines — The Philippine Stock Exchange index (PSEi), the local stock market barometer, went back to negative territory yesterday as investors took profits after a five-day upswing.

Traders said profit taking caused the decline but added that this was normal as market investors usually take money from the market when the stocks are attractive enough.

Thus, the PSEi plunged by 139.51 points, or 1.72 percent, to settle at 7,945.37.

Likewise, the broader All Shares index lost 55.79 points, or 1.13 percent, to end at 4,883.22.

All other indices also ended in the red with the property and mining and oil leading the losers.

Total value turnover, meanwhile, reached P10.553 billion. Market breadth was negative, 113 to 84 while 40 issues were left unchanged.

The total value turnover included a special block transaction of Orion Land Inc. AyalaLand Logistics Holdings Corp. sold  323 million shares at P2.47 per share.

In a report, Philstocks Financials said profit taking prevailed in yesterday’s session.

“The Philippine Stock Exchange closed lower at 7,945.37, down 1.72 percent or 139.51 points as the market corrected from the rally yesterday amid profit taking,”  Philstocks said.

2TradeAsia said the PSEi failed to sustain above the 8,000 mark as it was also weighed down by telecoms giant PLDT, which was down 8.39 percent.

Foreign transactions reverted to net foreign selling at P737 million after several days that net foreign buying prevailed in the market.

Foreign buying reached P7.3 billion while foreign selling was at P8 billion. Foreign participation was at 72 percent while local participation was 28 percent.