Market takes breather as investors pocket gains

MANILA, Philippines - The stock market’s bull run, which pushed the main index to repeated all-time highs, slowed down yesterday as investors took profits nearing the close of trading.

While the benchmark Philippine Stock Exchange index (PSEi) vaulted to yet another record high at 6,140.72 in morning trades, profit taking in the afternoon however pulled back the PSEi, ending the day down 0.1 percent or 6.23 points at 6,087.67.

“We corrected because the bulls are now taking a rest. We have run so far so investors are taking profits already,” Astro C. del Castillo, managing director of First Grade Finance Inc., said in a phone interview.

He said that early in the trading day, the market was driven by continued liquidity and optimism in the growing domestic economy.

The broader All Shares index likewise slightly fell 0.03 percent or 1.04 points to 3,836.10.

The sub-indices closed mixed, with gainers led by property firms that rose 1.17 percent while financial companies led decliners, slipping 1.08 percent.

Market breadth was negative as losers outpaced advancers, 97 to 73, while 45 stocks did not change. The value of traded shares dropped to P9.07 billion from Monday’s P9.28 billion.

“The market needs a pause,” Del Castillo said, adding that the main index will likely trade in a tight range for the rest of the week.

He said the bellwether index might build a base at the 5,900 - 6,000 level before pursuing another run.

Around Asia, stocks finished mixed after US Federal Reserve chief Ben Bernanke said the central bank’s bond buying is providing crucial support for the US economy, suggesting it will continue despite divisions with the Fed.