Stocks sustain drop as investors cash in

MANILA, Philippines — Profit taking continued yesterday at the Philippine stock market as investors continued to cash in on their recent gains.

The benchmark Philippine Stock Exchange index (PSEi) went down by 27.76 points, or 0.34 percent, to end at 8,064.92.

Likewise, the broader All Shares gauge slipped by 7.64 points, or 0.15 percent, to finish at 4,931.99.

The sectoral gauges were no better, also ending in the red save for two sectors – the financials and the services.

Total value turnover, meanwhile, reached P5.058 billion. Market breadth was negative, 94 to 92 while 57 issues were unchanged.

Traders said the market would look for clues in the June inflation, expected to be released today.

“Profit taking send the index to 8,064.92, down 0.34 percent or 27.76 points down ahead of the inflation data,” Philstocks Financials said.

According to the Bangko Sentral ng Pilipinas, inflation likely softened to as low as 2.2 percent in June on the back of lower pump prices and a stronger peso.

In a statement, the BSP’s Department of Economic Research pegged June inflation at 2.2 percent to three percent.

“Lower rice and domestic oil prices along with downward adjustment in electricity rates and recent peso appreciation are seen to temper inflation pressure during the month,” the central bank unit said.