Profit-taking dampens market rally

MANILA, Philippines — Last minute profit-taking dragged down the stock market in the red territory yesterday after making a brief return to the 7,000 level during the session.

The Philippine Stock Exchange index closed at 6,960.43, dropping by 0.28 percent or 19.38 points.

The broader All Shares index likewise fell by 0.27 percent or 9.69 points to settle at 3,626.71.

“Philippine shares were sold down as investors weighed in on inflation data amid fears of a market slowdown,” Regina Capital’s Luis Limlingan said.

Philstocks Financial research and engagement officer Mikhail Plopenio said the local bourse kicked off Tuesday’s session strong, opening above the 7,000 resistance level and was in the green territory for most of the day.

Despite reaching as high as 7,070.72, Plopenio said the market still closed below the 7,000 level, implying that it is not yet prepared to take the said resistance line.

“Investors seemed to have priced in the likelihood that March inflation has accelerated and possibly even exceeded the government’s target range of two to four percent. This comes after the Bangko Sentral ng Pilipinas projected inflation to settle within 3.4 to 4.2 percent,” Plopenio said.

“Adding to the woes was the slowdown of the local manufacturing sector’s expansion for March as seen in the S&P Global Philippines Manufacturing PMI reading of 50.9, slower than February’s 51,” he added.

Local sectors were mixed, with services at the top with a 1.47-percent increase, while financials was at the bottom with a 1.07-percent drop.

Market breadth was negative as decliners crushed advancers,105 to 88, while 45 shares were unchanged.

Plopenio said Tuesday’s net market value turnover at P6.22 billion was higher than the year-to-date average of P5.06 billion.

He said foreigners were net buyers with net inflows amounting to P781.54 million.