Index down anew on continued profit taking

MANILA, Philippines - Local share prices retreated anew yesterday as  investors took profits from a recent bull run that sent the index to record highs.

The Philippine Stock Exchange index (PSEi) declined 0.66 percent or 40.15 points to settle at 6,047.52, while the broader All Shares index eased 0.5 percent or 19.13 points to 3,816.97.

All sub-indices, save for financial firms that inched up 0.08 percent or 1.21 points to 1,583.01, were in the red, led by holding firms that shed 1.06 percent or 57.34 points to 5,332.09.

“The market has been on the rise since the start of December. There should be some correction,” Joseph Y. Roxas, president of Eagle Equities Inc., said in a phone interview.

“The market is still healthy. It’s just that that frontliners are taking a breather,” Roxas said, adding that investors already pocketed gains.

Decliners dominated advancers, 96 to 67, while 52 stocks did not change. Value of shares traded fell to P7.01 billion yesterday from P9.07 billion on Tuesday.

Overnight, markets in the US were up but Asian shares closed mixed yesterday.

The Dow Jones industrial average gained 0.2 percent or 27.57 points to 13,534.89 while the broader Standard & Poor’s 500 index added 0.11 percent or 1.66 points to 1,472.34.

In Asia, Japan’s Nikkei 225 sank 2.56 percent or 278.64 points to 10,600.44 but Singapore’s Straits Times slightly rose 0.36 percent or 10.23 points to 3,206.30.

Roxas said the main index might trade at a range of 6,000 to 6,100 for the rest of the week as the market builds a new base prior to trekking upwards anew.