Stocks drop due to profit taking, lack of leads

PHILIPPINE shares went  down on Wednesday as investors took profits and stayed on the sidelines while looking for fresh leads after the Christmas break.

The benchmark Philippine Stock Exchange index (PSEi) declined by 38.20 points or 0.58% to end at 6,462.80 on Wednesday, while the broader all shares index decreased by 11.41 points or 0.33% to close at 3,415.89.

“The local bourse dropped… as investors took some gains while awaiting fresh catalysts towards the yearend. Many were observed on the sidelines, with a net market value turnover of P3.42 billion, lower than this month’s average of P4.18 billion thus far,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

“The PSEi headed lower today due to the pickup in profit-taking activities amidst the lack of catalysts,” China Bank Securities Corp. Research Associate Lance U. Soledad likewise said in an e-mail on Wednesday.

Value turnover went up to P3.95 billion on Wednesday with 1.44 billion issues changing hands from the P3.21 billion with 536.25 million shares seen on Friday.

Seedbox Securities, Inc. equity trader Jayniel Carl S. Manuel said that the index declined due to the “lingering effects of the Christmas hangover,” causing thin trading volume as investors continued to “ease back into the market after the holiday festivities.”

The market was closed on Dec. 25-26 due to non-working days for Christmas.

“Moreover, some market participants appear to be cashing out gains from the earlier Christmas rally. As the market enters the final two days of trading for the year, expectations are optimistic for a potential upswing. The anticipation is fueled by a combination of year-end window dressing and opportunistic bargain hunting, suggesting a potential reversal in the trend as the year concludes,” Mr. Manuel said in an e-mail.

Most sectoral indices went down on Wednesday. Holding firms declined by 105.74 points or 1.66% to 6,261.85; services dropped by 7.52 points or 0.47% to 1,577.96; financials decreased by 6.13 points or 0.35% to 1,727.08; and industrials fell by 8.56 points or 0.09% to 8,908.01.

Meanwhile, mining and oil climbed by 184.32 points or 1.93% to 9,727.06 and property increased by 18.73 points or 0.65% to end at 2,868.88.

Decliners narrowly outnumbered advancers, 88 versus 82, while 52 names closed unchanged.

“Among the index members, Semirara Mining and Power Corp. was at the top, gaining by 4.06%, while Wilcon Depot, Inc. declined the most by 4.19%,” Philstocks Financial’s Ms. Alviar said.

Net foreign buying stood at P114.06 million on Wednesday versus the P87.05 million in net selling seen on Friday.

“In case the market continues to move lower, the 6,380-6,420 is seen as the immediate support level,” China Bank Securities’ Mr. Soledad said. — S.J. Talavera