Profit taking snaps strong two-day rally

MANILA, Philippines — Share prices cut short a strong rally at the start of the week, slipping back in the red yesterday as investors opted to take profit from the market’s recent gain.

In addition, optimism over the passage of the proposed Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) by the Senate and the House of Representatives has waned.

The benchmark  Philippine Stock Exchange index (PSEi) finished at 6,859.46, down 8.42 points or 0.12 percent.

Likewise, the broader All Shares index fell 0.91 point or 0.02 percent to close at 4,143.26.

The sectoral gauges were a mixed bag, with industrial and holding firms closing in positive territory while the rest of the sectors retreated.

Total value turnover reached P9.576 billion. Market breadth was negative, 110 to 106, while 44 issues were unchanged.

Investors are trying to find pockets of hope and optimism.  The CREATE measure includes the VAT-free sale and importation of COVID-19 drugs, vaccines, medical devices, and components of personal protective equipment  until December 2023, which will make the process cheaper for the private sector.

“The PSEi ended slightly lower, mainly flat as investors took some profits from the rally that we saw at the beginning of the week. Trading in blue chips has slowed down with most investors focusing on second and third liners. Optimism is limited and investors are more cautious this time around which is evident in the current trend,“ said Chris Mangun of AAA Southeast Equities.

Moving forward, investors continue to take a wait-and-see attitude and monitor current economic developments. The PSEi may continue moving sideways until the end of the week, Mangun also said.