Index tumbles on profit taking

MANILA, Philippines - Weak manufacturing growth in China and profit taking dragged down local share prices yesterday after a rally just a day ago.

The Philippine Stock Exchange index shed 1.94 percent or 138.12 points to slip back to the 6,900 level at 6,982.36, snapping a four-day climb while retreating from the all-time high closing of 7,120.48.

DA Market Securities said the main index slid due to profit taking and technical concerns on high valuations.

Asian shares were weighed down by weak factory output data in China, the world’s second largest economy.

Specifically, HSBC Purchasing Managers’ index for April dropped to 50.5 from 51.6 in March, showing signs of weak economic recovery in China.

Regional markets bucked the trend in Wall Street, which rose anew on the back of recovery in energy stocks.

In the local bourse, all counters were in the red. The broader all shares index declined 1.30 percent or 57.44 points to 4,364.78.

Holding firms slumped 3.22 percent or 208.91 points to 6,279.16.

Top-traded LT Group Inc. (-0.64 percent) suffered another setback while Alliance Global Group Inc. (-4.62 percent), SM Prime Holdings Inc. (-4.50 percent), SM Investments Corp. (-2.78 percent) and Ayala Corp. (-3.91 percent) also posted losses.