Profit-taking pulls PSEi down; peso up vs dollar



The Manila Times

Business Times

PROFIT-TAKING weighed on the stock market while the peso closed higher against the dollar as investors continued to await full-year economic growth results out on Thursday. The benchmark Philippine Stock Exchange index (PSEi) dropped by 28.18 points, or 0.40 percent, to close at 7,041.50 while the broader All Shares lost 4.77 points, or 0.13 percent, to end the day at 3,686.48. The peso, meanwhile, strengthened by 10-and-a-half centavos to P54.435:$1. “Investors ... took profits at the last minute, dragging the bourse to the red territory,” Philstocks Financial Inc. research associate Claire Alviar said, ahead of fourthquarter and full-year gross domestic growth data scheduled to be released on January 26. “Despite the decline, the market was still able to hold its ground above 7,000 levels,” Alviar added. “So far, we’re still seeing the 7,000 to 7,100 as the resistance range for the market while the support is pegged at 6,800.” Net market value at P5.00 billion was weaker than the average last week of P7.16 billion, Alviar continued. Regina Capital Development Corp. Managing Director Luis Limlingan, meanwhile, said an underwhelming start to the US earnings season and more signs that the world’s largest economy was slowing had also pulled down the local bourse. Rizal Commercial Banking Corp. chief economist Michael Ricafort, for his part, said the PSEi had corrected after global crude oil prices hit new 1.5-month highs amid China’s economic reopening. The peso opened trading at P54.6:$1 and ranged from P54.39 to P54.64. Volume for the day totaled $1.052 billion, down from Monday’s $1.24 billion. At the stock market, all sectoral indices except industrials (up 0.57 percent) closed in the red on Tuesday. Holding firms fell the most, by 0.70 percent. Just under 1.96 billion shares worth P5.40 billion were transacted. Advancers won against decliners, 103 to 89, while 48 remained unchanged.