Index slips as investors take profits

MANILA, Philippines - Liquidity-sapping initial public offerings (IPOs) and profit taking dampened share prices yesterday.

The Philippine Stock Exchange index (PSEi) ended the week in the red at it slipped 0.67 percent or 43.96 points to 6,539.81, while the broader all shares index declined 0.28 percent or 11.08 points to 3,962.81.

“There are two long weekend coming so investors are played it safe by cashing in on their gains,” Astro del Castillo, managing director of First Grade Finance Inc., said in a phone interview.

“Some investors cashed in ahead of IPOs while some took in profits,” said Freya B. Natividad, investment analyst at Papa Securities Corp.

Resorts World Manila owner Travellers International Hotel Group Inc. and the Gokongwei family’s Robinsons Retail Holdings Inc. are raising $473 million and $650 million, through an IPO, respectively.

The local bourse bucked the uptick in Wall Street, which was buoyed by strong corporate earnings. The Dow Jones industrial average picked up 0.6 percent or 95.88 points to 15,509.21 while the broader Standard & Poor’s 500 index gained 0.3 percent or 5.69 points to 1,752.07.

Locally, most counters were in the red, with the losers led by financial companies that sank 1.32 percent or 21.54 points to 1,607.90

But the property sector rallied 2.07 percent or 53.42 points to 2,629.86. Miguel A. Agarao, analyst at Wealth Securities Inc., said it was carried by SM Prime Holdings (+15.86 percent) whose weight in the PSEi was increased.