Profit-taking drags down stocks anew

MANILA, Philippines — A fresh round of profit-taking dragged share prices down to start the week as investors continued to cash in on their gains.

The benchmark Philippine Stock Exchange index (PSEI) plunged by 2.1 percent or 155.65 points to close yesterday’s session at 7,272.65.

The broader All Shares index likewise plummeted by 1.3 percent or 51.75 points, settling at 3,918.68.

“Philippine shares fell due to profit taking ahead of September consumer price index data on Friday,” Luis Limlingan of Regina Capital said.

Philstocks Financial research manager Japhet Tantiangco said investors decided to book gains as the market has already been on a four-week rally.

“The market also took a cautious stance while waiting for economic data this week, primarily the Philippines’ September inflation rate,” Tantiangco said.

Tantiangco said trading remained active with net value turnover amounting to P6.22 billion, higher than the year-to-date average of P5.19 billion.

Foreigners were net buyers with net inflows at P87.71 million.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the local stock market gauge corrected lower for the second straight trading day but is still considered a healthy profit-taking after gaining for most days since early August.

All sectors were in the red, with holding firms suffering the biggest hit with a 2.84-percent drop.

Market breadth was negative as decliners edged out advancers, 115 to 93, while 45 issues were unchanged.

ICTSI was the top traded company, declining by 1.46 percent to P404 per share, followed by BDO which fell by 2.11 percent to P158 per share.