PSE index snaps two-day climb on profit taking

Local stocks declined and snapped their two-day rise on Thursday as investors pocketed their gains amid a lack of trading drivers.

The Philippine Stock Exchange index (PSEi) went down by 6.98 points or 0.11% to close at 6,246.20, while the broader all shares decreased by 2.03 points or 0.06% to finish at 3,328.01.

The local bourse closed weaker due to profit taking, Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.

“This Thursday, the local market dropped by 6.98 points (0.11%) to 6,246.20 as the lack of a positive catalyst caused investors to take profits. The bourse made gains intraday, rising to 6,259.66 before sellers prevailed,” Mr. Plopenio said. 

“Also, the lack of a positive catalysts, together with ongoing economic concerns both at home and offshore, caused many to remain on the sidelines,” he added.

The local bourse dropped amid bets on the US Federal Reserve’s next move, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The PSEi corrected slightly lower after rising for two straight days on some profit-taking activities, locking in some gains ahead of the US Thanksgiving Holiday and also after the latest Fed minutes that hinted the need to proceed carefully in Fed rate decision, especially in ensuring the achievement of the inflation target,” Mr. Ricafort said.

US Federal Reserve officials agreed at their last policy meeting that they would proceed “carefully” and only raise interest rates if progress in controlling inflation faltered, the minutes of the Oct. 31-Nov. 1 gathering showed on Tuesday, Reuters reported.

Inflation has been slowing — consumer prices did not rise at all on a month-to-month basis in October — and while the Fed has not declared its fight against rapid price increases over, the tenor of the discussion has been shifting towards a focus on how long to keep the policy rate in the current 5.25%-5.5% range.

At home, sectoral indices were split on Thursday. Services retreated by 9.96 points or 0.65% to 1,511.63; holding firms declined by 19.92 points or 0.33% to 5,947.70; and financials went down by 4.60 points or 0.26% to 1,747.16.

On the other hand, property rose by 11.16 points or 0.42% to 2,658.52; mining and oil climbed by 38.71 points or 0.4% to 9,665.69; and industrials went up by 34.46 points or 0.38% to 8,947.49. 

“Among the index members, Monde Nissin Corp. was at the top, climbing 3.54% to P8.48. JG Summit Holdings, Inc. lost the most, dropping 1.94% to PHP 37.90,” Philstocks Financial’s Mr. Plopenio said.

Value turnover went down to PHP 2.33 billion on Thursday with 453.55 million shares switching hands, from the PHP 4.01 billion with 296.08 million issues seen the previous trading day.

Decliners outnumbered advancers, 91 against 74, while 48 names ended unchanged.

Net foreign buying went down to PHP 85.63 million on Thursday from PHP 1.02 billion on Wednesday. — R.M.D. Ochave with Reuters