Profit taking halts PSEi’s 5-day rally

MANILA, Philippines — The stock index halted a five-day rally to fall below the 6,900 mark yesterday, with heavy market play on Aboitiz stocks following news on the sale of a substantial stake to a Japanese power firm.

The 30-company Philippine Stock Exchange index (PSEi) wiped out 70.90 points or 1.02 percent to close at 6,885.36, while the broader All Shares index slipped by 45.23 points or 1.04 percent to finish at 4,284.72.

Philstocks Financial analyst Japhet Tantiangco said the local bourse declined as investors took profits out of the market’s preceding five-day rally.

“Inflation worries weighed on sentiment amid the rise in global oil prices. On the net, foreign funds have also exited the market, contributing to the fall amid the depreciation of the peso,” he said.

Net foreign outflows amounted to P1.94 billion. Trading was strong with net value turnover posting P15.04 billion, above the year-to-date average of P7.15 billion.

Traders said the market also tumbled after investors unloaded their shares in Aboitiz Equity Ventures and its unit, Aboitiz Power, following a recent stake sale.

AEV and AP, both PSEi components, accounted for 38 points or 54 percent of the drop.

Cebu-based conglomerate AEV announced it was selling up to a 27 percent stake in Aboitiz Power to Japanese power generation company JERA Co. in a deal that would raise at least $1.463 billion for the Aboitiz Group.

In other Asian markets, shares mostly fell as concerns about China chipped away at investor optimism following a mixed finish on Wall Street.