Index down anew on continued profit taking

MANILA, Philippines — The stock index finished in negative territory for the second day in a row yesterday as investors continue to unload stocks acquired from last week’s runup for profit.

The bellwether Philippine Stock Exchange index or PSEi closed at 6,377.79, a decline of 37.29 points or 0.58 percent.

The broader All Shares likewise fell by 9.82 points or 0.25 percent to finish at 3,808.29.

Most of the other gauges slipped as well, led by property, mining and oil, holding firms and financials. On the other hand, the industrial and services subsectors finished in positive territory.

A total of P6.803 billion worth of shares changed hands. Market breadth, however, was positive, 112 to 89, while 46 issues were unchanged.

Chris Mangun of AAA Southeast Equities said the PSEi continued lower as selling pressure picked up.

“More investors are now securing profits from the recent rally which is giving investors who have not been able to ride the rally a chance to pick up shares at lower prices,” Mangun said.

He said market investors would likely wait for third quarter earnings results to see how to move about with their investments.

“As more third quarter earnings reports come in, investors are realizing that the numbers are not as bad as what was expected. With more mobility and business restrictions lifted by the day, economic activity will continue to pick up,” Mangun said.

Newcomer Converge ICT, which made its market debut last Monday, eased its slump after a couple of days of huge losses.

“Weak hands have exited and the price may begin to recover. It remains the most traded issue for a third day in a row,” Mangun said.

Converge closed at P14.50, still down by 4.73 percent but not as much as the 11.2 percent slump on the first day from its IPO price of P16.8 per share.