Profit taking brings down share prices anew

MANILA, Philippines — Share prices fell for the second straight day as investors continued to take profit from the market’s recent run up, traders said.

The benchmark Philippine Stock Exchange index or PSEi closed 107.16 points or 1.50 percent lower to 7,001.51 yesterday while the broader All Shares index also finished in the red at 4,184.28, down 44.27 points or 1.04 percent.

Most of the subsectors finished in negative territory, with only the mining and oil index ending in the green.

Total value turnover reached P14 billion. Market breadth was negative, 120 to 97, while 40 issues were unchanged.

Traders said a host of reasons led to the market’s decline, including continued profit-taking and the looming rebalancing of the MSCI global stock index.

“The local market tumbled for the second straight session as the last day before the implementation of MSCI changes nears. The PSEi is expected to see $57.8 million worth of outflows,” AB Capital Securities said.

Chris Mangun of AAA Southeast Equities said the market continued lower yesterday as profit-taking persisted. It ended right at the 7,000 psychological support level.

“The pullback was expected after the PSEi gained more than 22 percent in the last three weeks. Blue chip property firms Ayala Land Inc. and SM Prime Holdings were the biggest drag on the index as they both lost more than three percent,” Mangun said.

He said the correction is healthy for the market’s uptrend as it relieves selling pressure and allows other investors buy in at lower prices.

“If it does not hold support at 7,000 in the next session, we may see it continue lower towards its next support at 6,850. Several second-liners also saw major pullbacks,” he said.