Stocks down on profit taking after two-day climb

Philippine stocks slipped on Wednesday as investors booked profits from the market’s two-day climb and monitored the release of corporate results.

The Philippine Stock Exchange index (PSEi) inched down by 0.22% or 15.01 points to close at 6,551.81, while the broader all shares index declined by 0.16% or 6.45 points to 3,798.88.

“The PSEi closed in the negative this Wednesday. The local market declined as investors decided to take profits following a two-day rally,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “Investors are also trading cautiously while moving through the first-quarter corporate results.”

“Philippine shares declined as investors locked in gains from the previous session’s rally,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The index opened Wednesday’s session at 6,558.56, slightly lower than Tuesday’s close of 6,566.82, which was an over four-month high. It climbed to a peak of 6,591.94 during the day but failed to hold on to its gains, closing near its intraday low of 6,550.06.

“The PSEi corrected slightly lower, considered healthy profit-taking, after gaining for most days over the past three weeks… after the dollar-peso exchange rate corrected for the second straight day…,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort added in a Viber message.

The peso closed at PHP 55.855 against the dollar on Wednesday, down from Tuesday’s finish of PHP 55.795, data from the Bankers Association of the Philippines’ website showed.

The majority of sectoral indices closed lower on Wednesday. Holding firms went down by 1.53% or 84.91 points to 5,449.32; financials decreased by 1.02% or 25.86 points to 2,495.62; industrials sank by 0.51% or 47.52 points to 9,190.62; and mining and oil declined by 0.47% or 44.04 points to 9,211.29.

Meanwhile, property rose by 2.89% or 65.47 points to 2,329.60 and services went up by 0.49% or 10.56 points to 2,139.87.

“Aboitiz Equity Ventures, Inc. was the day’s index leader, jumping 9.56% to PHP 37.25. Monde Nissin Corp. was at the bottom, plunging 9.75% to PHP 7.13,” Mr. Tantiangco said.

Value turnover increased to PHP 9.5 billion on Wednesday with 1.56 billion shares traded from the PHP 8.89 billion with 1.16 billion issues exchanged on Tuesday.

Decliners bested advancers, 114 versus 82, while 46 names were unchanged.

Net foreign buying surged to PHP 356.25 million on Wednesday from PHP 54.62 million on Tuesday.

Mr. Ricafort put the PSEi’s support at 6,275-6,385 and major resistance at 6,705-6,915.

Meanwhile, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.4% on Wednesday, while Japan’s Nikkei 225 dipped 0.1%, Reuters reported.

US stock futures were flat after the S&P 500 moved into positive territory for the year on Tuesday. — R.M.D. Ochave with Reuters