Share prices fall as investors take profits

MANILA, Philippines — Profit-taking continued to hold sway on stocks as most investors remain on the sidelines in anticipation of the release of third quarter corporate earnings.

The benchmark Philippine Stock Exchange index (PSEi) closed at 7,211.54, down 78.07 points or 1.07 percent, while the broader All Shares index slipped 25.86 points or 0.58 percent to finish at 4,436.84.

Total value turnover thinned to P5.574 billion, with declining stocks outnumbering advancers, 120 to 75, while 55 issues were unchanged.

“Profit-taking continued to weigh down the index, and volume remained thin as investors wait on the sidelines for Q3 earnings reports,” AB Capital Securities said in a market commentary.

AAA Equities analyst Chris Mangun said the market at current prices already presents good opportunities and historically, the fourth quarter has always been good for the market as investors are more optimistic and there are more economic activities.

The market, he added, would, keep grinding higher as the PSEi nears 2021 highs of 7,300 to 7,400 “until we break that again.”

In a report, COL Financial said with investors being more comfortable with the 7,000 level, “the medium-term path for the PSEi remains positive as the COVID-19 situation in the country continues to improve.”

But it added a pause may be warranted this week especially as investors start digesting the third quarter earnings releases.

COL chief technical analyst Juanis Barredo notes that the PSEi has recently reached back into overbought levels and this may prove difficult to hold the ship upwards without first drawing in some corrective cascades.

“As such, it may be prudent to wait for pullbacks or pause patterns to foster fresh setups for new entry conditions. It may possibly allow for some profit taking, but you may not want to unroll all your positions given we are still into a major recovery swing. Selling all could risk losing your stand into the rally especially if reactions prove to be light and stumpy.,” he said.