Connect with us

Hi, what are you looking for?

Economy

Local shares decline on profit taking after rally

By Denise A. Valdez, Senior Reporter

LOCAL SHARES surrendered to profit taking on Tuesday following a rally that brought the main index to its highest level since the coronavirus pandemic started.

The Philippine Stock Exchange index (PSEi) shed 69.95 points or 0.97% to close the session at 7,108.67. The broader all shares index also trimmed 25.71 points or 0.6% to end at 4,228.55.

“The market was down today on profit-taking after it moved up substantially on the last two trading sessions on overbought condition,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message on Tuesday.

“With a lofty valuation of the PSEi despite the higher contraction in GDP (gross domestic product) in the third quarter than estimated, the market is bound to correct as what happened today,” he added.

Despite the weaker-than-expected economic backdrop, the market’s decline on Tuesday is necessary to help it maintain a stronger momentum, AAA Southeast Equities, Inc. Research Head Christopher John Mangun said.

“The PSEi ended with substantial losses as selling pressure picked up, which was to be expected as it hovered around its eight-month high, Mr. Mangun said in an e-mail.

“Trading volumes came in at a whopping P12.4 billion, more than double the daily average of about P6 billion as investors remain confident in the current environment,” he added.

Value turnover stood at P12.95 billion with 8.27 billion issues switching hands, higher than the previous day’s P11.93 billion with 10.3 billion issues.

But after the correction on Tuesday, Mr. Mangun said the PSEi “may rebound and begin to move higher” on the back of optimism that quarantine restrictions will be further eased before December.

Contrary to the local market, other Asian stocks were treading in green territory on Tuesday due to another positive news of a coronavirus disease 2019 (COVID-19) vaccine.

On Monday, news wires reported that United Kingdom-based AstraZeneca Plc has seen a 70% success rate in its COVID-19 vaccine. This followed news in the prior weeks that the COVID-19 vaccines of Pfizer, Inc. and BioNTech SE and Moderna, Inc. were similarly recording positive results.

Nearly all sectoral indices at the PSE posted losses on Tuesday. Mining and oil dropped 140.43 points or 1.66% to 8,276.43; holding firms lost 109.89 points or 1.48% to 7,314.40; industrials cut 136.17 points or 1.46% to 9,178.32; services fell 17.01 points or 1.09% to 1,540.36; and financials slid 3.17 points or 0.21% to 1,474.40.

Property was the only index that posted gains, improving 9.84 points or 0.27% to close at 3,566.62 on Tuesday.

Decliners outnumbered advancers, 134 against 101. Some 40 names ended unchanged.

Net foreign selling grew to P621.19 million on Tuesday from P351.89 million in the previous session.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

By Jenina P. Ibañez, Senior Reporter PHILIPPINE MANUFACTURING activity rose to an eight-month high in November, as new orders increased for the first time...

Economy

THE NATIONAL Government’s outstanding debt swelled to P11.97 trillion as of the end of October as it offered more domestic securities, preliminary data from...

Economy

MOTORISTS experience heavy traffic along Commonwealth in Quezon City on Wednesday. — PHILIPPINE STAR/ MICHAEL VARCAS BANGKO SENTRAL ng Pilipinas (BSP) Governor Benjamin E....

Economy

THE SENATE on Wednesday approved on third and final reading the proposed P5.024-trillion national budget for 2022. Senators unanimously passed the 2022 General Appropriations...

Economy

EVERYTHING’s coming full circle from the boy from Cebu who wanted to write but ended up cooking. Myke “Tatung” Sarthou, celebrity chef, started out...

Economy

1 of 6 THE VIRTUS awards by the Hotel Sales and Marketing Association (HSMA) Philippines continues to honor professionals and institutions in hospitality: a...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.