Stocks pull back from record highs

Share prices pulled back yesterday after two consecutive days of record highs due to profit taking.

The benchmark Philippine Stock Exchange index (PSEi) retreated 39.57 points to close at 8,358.47, while the broader All Shares index also shed 14.83 points, or 0.30 percent, to end at 4,907.88.

Traders said profit taking prevailed yesterday after the index reached new record highs on Monday and Tuesday.

Most indexes were down except for the financials, which closed higher by 10.61 points, or 0.52 percent, to finish at 2,027.67.

Total value turnover reached P11.63 billion. Market breadth was negative, 97 to 90 while 56 issues were left unchanged.

Traders said the market needed to do some correction yesterday. They also said investors are also waiting for more definitive progress in the Duterte administration’s tax reform package.

The Tax Reform for Acceleration and Inclusion (TRAIN) bill is expected to raise some P148 billion in fresh revenue to bankroll the government’s massive infrastructure program.

Meanwhile, Asian shares jumped to the highest in a decade yesterday as Wall Street scaled all-time highs, while the dollar loitered around two-week lows on worries President Donald Trump’s tax plan could stall.

Japan’s Nikkei closed at the highest level since 1996, even as scandal-hit Kobe Steel extended losses.

Futures pointed to a steady start for European shares already at all-time peaks with e-mini futures almost unchanged in Asian trading.