PSE index down as investors book profit

PHILIPPINE share prices on Friday ended its three- day winning run as investors booked profits after the main index hit a fresh record high the other day.

At the Philippine Stock Exchange ( PSE), the benchmark index lost 63.51 points or 1.32 percent to 4,758.57, while the broader allshares gave up 30.69 points or 0.95 percent to 3,210.69.

Decliners outnumbered advancers, 107 to 79, while 32 stocks were unchanged. A total of 11.44 billion stocks worth P8.68 billion were traded.

“Investors locked in gains capitalizing on the market’s latest ascent after we hit another all-time high,” said Freya Natividad, investment analyst at 2Tradeasia.com.

On Thursday, the bellwether PSE index set another historic high at 4,822.08. It was the seventh time that the index rewrote all-time levels.

“Given the all-time high, some of investors opted to take profits led by JG Summit Holdings Inc. JG Summit triggered the sell- off and it infected everyone,” said Astro del Castillo, managing director at First Grade Finance Inc.

Affiliates of JG Summit Holdings Inc. sold $ 125 million worth of shares in the conglomerate to global investors at P25 apiece, a 12.28-percent discount from Thursday’s closing price of P28.50 each.

Investors also dumped blue chips led by Alliance Global Group Inc., Energy Development Corp., SM Investments Corp. SM Prime Holdings., Philippine Long Distance Telephone Co., Metropolitan Bank & Trust Co. and Ayala Corp.

“The recent run- up appears to be too steep. Expect some minor profit- taking to the 4,700 levels before a test of the 4,900 to 5,000 levels,” said BDO Unibank Inc. in a research note.

Overnight, US stocks barely moved ahead of the release of a key employment report, which is expected to affirm the improving labor market trend. The Dow Jones industrial average dropped 11.05 points, or 0.09 percent, to 12,705.41.