Index down anew on continued profit taking

MANILA, Philippines - Local shares dropped for the second straight day on continued profit taking and timid performance of markets abroad.

The Philippine Stock Exchange index shed 0.39 percent or 25.88 points to 6,561.20, retreating from an intraday high of 6,626.01. The broader all shares index lost 0.19 percent or 7.55 points to 3,948.94.

“We attribute (the decline) to profit taking by short terem investors,” said Nisha S. Alicer, research strategist at DA Market Securities.

Investors were quick to unload stocks and book gains as the benchmark index hit the 6,600 level. Alicer said investors should buy back close to the initial support level of 6,480 or the 6,300 secondary support.

Overseas markets were lackluster yesterday, failing to lift local sentiments.

Asian bourses closed lower ahead of the release of the crucial US jobs report. Japan’s Nikkei 225 fell 0.05 percent or 8.11 points to 15,063.77.

Wall Street was also relatively flat pending the release of the report. The Dow Jones industrial average dropped 0.45 point to 16,572.55 while the broader Standard & Poor’s 500 index eased 0.11 percent or 2.13 points to 1,888.77.

Most counters were in the red, led by the service sector that fell 0.94 percent or 18.41 points to 1,946.65 and the property sector slipped 0.36 percent or 9.53 points to 2,611.62. But industrial companies rose 0.26 percent or 26.36 points to 10,042.42.

Turnover value hit P7.96 billion, down from P8.97 billion on Thursday. Advancers again outplayed decliners, 89 to 70, while 49 stocks did not change.