Index snaps short rally as investors take profits

MANILA, Philippines — Share prices cut short a three-day rally as investors cashed in on recent gains ahead of another long weekend break, traders said.

The Philippine Stock Exchange index or PSEi slipped by 106.54 points or 1.6 percent to close at 6,545.17 while the broader All Shares index retreated by 46.30 points or 1.14 percent to finish at 3,998.64.

A total of P5.015 billion worth of shares changed hands yesterday, with decliners edging advancers, 110 to 89, while 54 issues were unchanged.

“Local market tumbled on profit-taking. Net foreign selling accumulated to P2.3 billion for the week excluding block sales, marking eighth straight week of net selling,” AB Capital Securities said in a market commentary.

Moving forward, investors would be keeping a close watch on the progress of the vaccine rollout next week and the containment of COVID-19 cases, traders said.

Strong full year 2020 and first quarter corporate results will also be factors in enticing investors back to the market.

The market closes today in observance of the Day of Valor holiday.

Around Asia, shares were mostly higher after a mixed close on Wall Street, where gains for several Big Tech stocks nudged the S&P 500 to a second record high in three days.

The broader market has been mostly subdued this week as investors remain cautiously optimistic about the economic recovery.

Analysts expect the economy to recover this year, but they also anticipate the market remain choppy as investors shift money to companies and industries that stand to benefit as the pandemic eases.