Stocks pull back after 6-day rally

Stock investors pulled back yesterday, taking money from the market after a six-day rally, as all sectors finished in the red.

The benchmark Philippine closed at 7,375.68, down 65.99 Stock Exchange index (PSEi) points or 0.89 percent, while the broader All Shares index slipped by a sizable 567.33 points or 12.52 percent to end at 3,964.53.

“The local market pulled back as investors took profits out of the preceding six-day rally. The market also took cues from Wall Street’s overnight decline ahead of the release of the US October inflation report. Trading was strong with net value turnover registering P9.30 billion, above the year-to-date average of P7.32 billion,” said Japhet Tantiangco of Philstocks Financial.

Despite the pullback, foreigners stayed in the market and even picked up bargains. Foreigners were net buyers yesterday with net inflows amounting to P517.29 million.

Net foreign buying is already on a five-day streak, averaging P661.15 million per day.

“Profit taking pulled the index lower after six sessions of gains. Market breadth was negative with 116 losers over 77 gainers, but foreign investors were net buying by P517 million,” AB Capital Securities said in a commentary.

It noted that more than 28 percent of total trades were in Synergy Grid & Development Philippines Inc., which listed more than one billion follow-on shares yesterday.

Meanwhile, the PSE moved to suspend the trading in MerryMart Consumer Corp. after the company said it executed the definitive agreements finalizing the acquisition of 337,856 common shares for 75.08 percent equity stake in Carlos Drugs-Lucena Inc.