Stocks decline on profit taking

MANILA, Philippines — Profit taking prevailed in the stock market yesterday, sending the benchmark Philippine Stock Exchange index lower by 66.42 points, or 0.81 percent, to close at 8,051.52.

Volume, meanwhile, was at 949 million as value turnover stood at P5.631 billion.

All other gauges finished in negative territory with the services, holding firms and financials sectors in the red.

Despite the negative start for the week, First Metro Investment Corp. said the stock market gauge could rally to 8,400 to 8,800 this year with price to earnings ratio of 18 to 19 times.

In a briefing yesterday, FMIC vice president Cristina Ulang said corporate earnings may grow by 10 percent.

At the same time, FMIC noted that the equities market has a lackluster performance in the first half, raising only a total of P16 billion comprised of P8 billion stock rights offering of PSBank and some private placements.

For the rest of the year, FMIC expects volumes to recover given the renewed interest in the real estate investment trusts and the resumption of initial public offerings.

Traders said profit taking has been prevailing given the strong performance of the market in recent weeks.

LT Group disclosed yesterday that its president and COO Michael Tan disposed of 233,000 shares at P15.32 per share or a total of P3.6 million. Shares of LT Group finished at P15.80 per share yesterday, down 0.50 percent.