Profit taking snaps PSEi’s climb
Investors taking profits caused the stock market to end its four-day winning streak and slip back to the 6,800 territory on Thursday.
The bellwether Philippine Stock Exchange index (PSEi) declined by 0.87 percent or 60.27 points to close at 6,882.49 while the broader All Shares shed 0.56 percent or 23.54 points to end at 4,163.22.
Philstocks Financial Inc. senior research analyst Japhet Tantiangco said investors booked gains after the main index rallied for much of this week.
The rise in US bond yields and expectations of higher inflation further weighed on investor sentiment.
Net value turnover was at its lowest for the year so far at P6.8 billion.
Foreign funds continued to exit as net foreign selling reached P627.63 million on Thursday.
AAA Equities Head of Research Christopher Mangun said selling pressure picked up and trading volumes decreased.
“The rally that we have been seeing in the last few days is confirmed to be more of a correction after several weeks of decline, instead of higher valuations due to the rollout of [coronavirus] vaccines or easing of restrictions,” he explained.
Mangun said the market’s general trend was still sideways as sentiment remained cautious due to the uncertainty over the economy’s recovery from the coronavirus pandemic.
“This sideways trend will continue until investors are convinced that higher valuations are justified,” he added.
Most indices of local sectors ended in the read, with mining and oil tumbling the most at 1.97 percent. Industrial was the lone gainer at 0.2 percent.
Total volume turnover was at 2.7 billion shares valued at P7.11 billion.
Losers led gainers, 119 to 110, while 40 securities were unchanged.