Profit-taking snaps record breaking run

Local shares tumbled yesterday following a three-day record-breaking surge investors cashed in on their hefty profits. The local stock market failed to be inspired by another record-breaking close overnight in Wall Street

The benchmark Philippine Stock Exchange index (PSEi) closed 131.44 points, or 1.59 percent lower at 8,162.70. The broader All Shares index also fell 58.27 points or 1.19 percent at 4,828.21 But trading volume remained heavy with 1.31 billion shares, valued at P8.90 billion, changing hands. Decliners swamped advancers, 121-69, with 54 issues unchanged.

Meanwhile, Tokyo's benchmark Nikkei index on Tuesday climbed nearly two percent to close at its highest level in more than two years, rising past the psychologically important 20,000 mark. However, most Asian stock markets retreated. The Nikkei 225 index rose 1.96 percent, or 389.88 points, to end at 20,299.38, its highest since August 2015, after a weaker yen lifted exporters.

The broader Topix index rose 1.77 percent, or 28.94 points, to end the session at 1,667.88. Tokyo was following Wall Street higher, as US stocks logged fresh records in advance of this week's meeting of the Federal Reserve, which is expected to announce a drawdown of its massive bond holdings.

The Fed is due to begin a two-day monetary policy meeting Tuesday and markets will be watching to see how chairwoman Janet Yellen describes recent trends in inflation for the world's largest economy, hoping for clues about the timing of the next interest rate rise.