Index tumbles below 7,000 level on profit taking

MANILA, Philippines — The stock market opened the week on a sour note as investors pocketed profits amid domestic and international concerns.

The Philippine Stock Exchange index fell below the 7,000 mark, tumbling by 81.19 points, or 1.15 percent, to close at 6,970.97. Likewise, the broader All Shares index dropped by 1.02 percent or 37.67 points to settle at 3,659.96.

“The local bourse started the week in the negative territory as investors take profits amid the lack of a catalyst,” said Japhet Tantiangco of Philstocks Financial.

“Investors are concerned over the sustainability of the local economy’s strong performance seen in 2022 amid lingering headwinds from elevated inflation, to rising interest rates, to challenges from offshore,” he said.

Luis Limlingan of Regina Capital said Philippine shares started the week in the red with attention specifically on the US Fed interest rate decision out this week.

“Many are still deciphering the recent discussion from Fed officials as to the direction of interest rates given the trajectory of inflation in recent months,” he said.

Local counters were dominated by those in the negative territory, led by mining and oil that plummeted by 3.25 percent.

The rest of the sectoral indexes, except for financials which posted a 0.51-percent increase, plunged by more than one percent.

Market breadth was negative as decliners crushed advancers, 147 to 57, while 38 stocks were unchanged.

Value turnover was strong at P8.30 billion.

Foreigners were net buyers with net inflows amounting to P135.02 million.

Across Asia, stocks mostly fell as traders struggled to maintain momentum from last week’s rally, though Shanghai advanced as mainland Chinese markets reopened after a week-long Lunar New Year break.

Even a strong performance on Wall Street was not enough to lift sentiment across the region, after data showed the Federal Reserve’s preferred gauge of inflation rose in December at its slowest pace in more than a year. – AFP