PSEi eases as investors take profits

Share prices eased yesterday, bucking the uptrend in most Asian stocks as investors took profits after the previous week’s rally.

The benchmark Philippine Stock Exchange index (PSEi) declined 40.91 points to settle at 7,609.31, while the broader All Shares index went down 19.16 points to close at 4,498.95.

Analysts said the market continued to look for leads given the uncertainties on both the local and global fronts.

Most counters ended in negative territory, except for the industrial and property sectors, which managed to climb.

Market breadth was negative as decliners outnumbered advancing stocks, 94 to 74 while 57 stocks were left unchanged.

Justino Calaycay of A& A Securities said third quarter earnings should provide extra support to boost the market amid the prevailing volatility.

“The PSEI has managed to convincingly check the slide that pulled the measure near the 7300- line. Absent any further surprises or at least when we have developed an immunity to ’shock announcements,’ we may have hit a bottom. Earnings should provide support and divert the market’s attention to company fundamentals at least for the next two-to-three weeks,” Calaycay said.

Furthermore, he said the economic growth, should also boost confidence that the momentum of second quarter earnings would spill over to third quarter as the cycle begins to roll-in this week.