PSEi drops on profit taking after 4 weeks of rally

By Revin Mikhael D. Ochave, Reporter

PHILIPPINE STOCKS closed lower on Monday as investors booked gains after a four-week rally.

The bellwether Philippine Stock Exchange index (PSEi) fell by 2.09% or 155.65 points to 7,272.65. The broader all-share index lost 1.3% or 51.75 points to 3,918.68.

“The local market plunged as investors continued with their profit-taking,” Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financial, Inc., said in a Viber message. “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 September inflation data due this week, he added. Inflation data will be released on Friday.

Philippine inflation eased to a seven-month low of 3.3% in August from 4.4% in July and 5.3% a year earlier.

“Philippine shares fell due to profit–taking ahead of September consumer price index data on Friday,” Luis A. Limlingan, head of sales at Regina Capital Development Corp., said in a Viber message.

He said the September S&P Manufacturing Purchasing Managers’ Index and August producer price index are also due this week.

In the US, key data releases include job openings and labor turnover survey report, ISM Manufacturing Index on Tuesday and the employment report on Friday, aside from speeches from US Federal Reserve Chairman Jerome H. Powell and other officials, he added.

Back home, all of the market’s sectoral indices closed lower, led by holding firms which dropped by 2.84% or 180.06 points to 6,150.15. The property index fell by 1.95% or 58.37 points to 2,930.63, while the financial index lost 1.78% or 41.76 points to 2,297.62.

Services declined by 1.32% or 29.95 points to 2,231.26, while mining and oil retreated by 1.31% or 115.75 points to 8,675.63. The industrial index fell by 1.09% or 107.01 points to 9,710.68.

Value turnover rose to P7.22 billion covering 1.1 billion shares from P6.97 billion involving 1.37 billion shares on Friday.

Decliners beat advancers 115 to 93, while 45 stocks were unchanged. Net foreign buying dropped to P87.71 million from P175.76 million.