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Business

Stocks extend decline as profit taking persist

Iris Gonzales - The Philippine Star
Stocks extend decline as profit taking persist
The benchmark Philippine Stock Exchange index (PSEi) closed at 6,442.13, down by 47.52 points or 0.73 percent, while the broader All Shares index ended at 3,403.93, down 15.72 points or 0.46 percent.
STAR / File

MANILA, Philippines — Profit taking continued to affect the market’s performance as the main stock index fell for a third consecutive session yesterday.

The benchmark Philippine Stock Exchange index (PSEi) closed at 6,442.13, down by 47.52 points or 0.73 percent, while the broader All Shares index ended at 3,403.93, down 15.72 points or 0.46 percent.

Total value turnover reached P5.64 billion. Market breadth was negative, 105 to 83, while 54 issues were unchanged.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said the PSEi closed lower although it continued to hover among two-month highs.

Claire Alviar of Philstocks Financial said last-minute profit taking pulled the market down as investors await the release of inflation figures for November, which analysts expect to breach the eight percent rate.

Investors were likewise put off by the government’s lowering of its growth target for 2023 to six to seven percent, from 6.5 to eight percent, taking into account an anticipated weakening in global activity, but retained its expansion goals for the succeeding five years.

The government also revised its foreign exchange rate assumptions and now expects the peso to trade against the US dollar at 54-55 in 2022 compared with the previous assumption of 51-53, at 55-59 in 2023, and at 53-57 in 2024, compared with the previous forecast of 51-55 for 2023 onwards.

Around Asia, most emerging markets rose as a softer US dollar and signs of China easing its strict zero-COVID strategy supported investors’ appetite for riskier assets.

Steps taken in some Chinese cities to ease coronavirus curbs raised hopes of increased demand for commodities in Southeast Asia’s biggest trading partner.

“China remains a dominant driver, and the good news has been rolling in – through the weekend we’ve heard more news with Shanghai and Hangzhou easing restrictions, with PCR tests no longer needed to visit certain public venues,” said Chris Weston, head of research at broker Pepperstone.

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