Philippine shares end four-day rally on profit taking

Philippine stocks snapped a four-day rally on Monday on last-minute profit taking and as investors awaited fresh leads, including the release of key economic data this week.

The bellwether Philippine Stock Exchange index (PSEi) dropped by 0.67% or 43.33 points to close at 6,364.94, while the broader all shares index retreated by 0.27% or 10.39 points to 3,781.67.

“The local market ended in negative territory as investors booked profits on the final minutes of the trading day. This comes after the bourse posted four consecutive days of gains,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message. “Investors also took a cautious stance while waiting for fresh leads.”

“The local bourse opened higher on quarter-end window dressing but closed in the red as investors booked gains ahead of key data releases,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. “Focus is on Friday’s June inflation print and Tuesday’s purchasing managers’ index and business confidence readings, with easing inflation likely to support Bangko Sentral ng Pilipinas (BSP) rate cut hopes.”

The Philippine Statistics Authority will release June inflation data on Friday, July 4.

“The PSEi corrected lower after gaining for four straight trading days, considered a healthy profit taking, with the decline seen in the final minutes of the last trading day of June, after the BSP downgraded its estimates for the balance of payments (BoP) and components amid external uncertainties recently,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort added in a Viber message.

The BSP said on Monday that it expects the country’s BoP position to end at a USD 6.3-billion deficit this year, wider than its previous forecast of a USD 4-billion gap, due to heightened global trade and geopolitical risks. The country posted a USD 3-billion BoP deficit in the first quarter.

Almost all sectoral indices closed lower on Monday. Services sank by 2.2% or 48.66 points to 2,162.58; financials declined by 1.68% or 38.99 points to 2,278.62; mining and oil went down by 0.77% or 74.65 points to 9,504.59; industrials retreated by 0.54% or 49.61 points to 9,042.65; and holding firms decreased by 0.25% or 13.89 points to 5,496.55.

Meanwhile, property rose by 2.17% or 50.92 points to 2,394.73.

“Ayala Land, Inc. was the top index gainer for the day, climbing 4.65% to PHP 27. Jollibee Foods Corp. was the main index laggard, falling 5.51% to PHP 216,” Mr. Tantiangco said.

Value turnover increased to PHP 7.89 billion on Monday with 1.05 billion shares traded from the PHP 6.52 billion with 1.66 billion issues exchanged on Friday.

Advancers bested decliners, 108 versus 82, while 61 names were unchanged.

Net foreign buying stood at PHP 114.09 million on Monday, a turnaround from the PHP 7.6 million in net selling recorded on Friday. — Revin Mikhael D. Ochave