Index slips anew on reg’l selloff, profit taking

MANILA, Philippines - Philippine stocks retreated anew yesterday due largely to the selloff in Asian markets and profit taking in the local front.

The Philippine Stock Exchange index lost 0.68 percent or 45.96 points to close at 6,717.66, while the broader all shares index shed 0.70 percent or 28.94 points to settle at 4,086.05.

“The local market moved with the region. There was profit taking in Japan and there was a stronger yen,” Conrado Bate, CEO of online stockbroker COL Financial Group Inc., said in an interview.

Asian stocks posted losses amid concerns over the economy of China and the US dollar hitting a five-week low.

Japan’s Nikkei 225 sank 3.32 percent or 468.85 points to 13,661.13, while Hong Kong’s Hang Seng index fell 0.54 percent or 117.81 points to 21,851.14.

Locally, most counters were in the red, led by financial companies that slipped 1.86 percent or 29.96 points to 1,578.32. Mining and oil bucked the trend, surging 3.7 percent or 545.69 points to 15,296.74 as Lepanto Consolidated Mining rallied 25.45 percent given indigenous peoples’ approval of its mining operations.

The bellwether index already hit the technical resistance of 6,800, prompting investors to pocket gains, Bate said.

“Corporate earnings were good but people priced that in already,” Bate said.

The earnings season has started, with companies like SM Prime and Manila Electric Co. reporting higher earnings in the first half.