Profit-taking ends PSEi 4-day rally

Philippine stocks retreated on Tuesday as investors booked profits after four consecutive sessions of gains, while concerns over a weaker peso and the prospect of higher fuel prices dampened market sentiment.

The benchmark Philippine Stock Exchange Index (PSEi) fell 1.28 percent or 81.92 points to close at 6,333.8, pulling back after briefly testing higher levels in recent sessions.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said that despite the decline, the PSEi remained near its highest level in more than four and a half months or since March 5.

Luis Limlingan, head of sales at Regina Capital Development Corp., said the decline was largely driven by profit-taking as the benchmark continued to struggle to establish a foothold above the 6,400 mark.

“The pullback was viewed as a healthy correction as the market neared overbought territory. Sentiment was also weighed down by the peso’s depreciation against the United States dollar and the threat of the sharp increase in local oil prices,” Limlingan said.

Also, investor sentiment was weighed down by the peso’s depreciation against the US dollar and the threat of a sharp increase in local oil prices, which could stoke inflation and pressure consumer spending.

Trading activity remained relatively active, with total turnover, net of extraordinary block sales, reaching P7.39 billion.

Market breadth, however, turned negative as decliners outnumbered advancers, 107 to 91.

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Among individual stocks, Lopez Holdings Corp. emerged as the day’s top gainer, surging 13 percent to P5.65.

On the other hand, Jolliville Holdings Corp. was the main laggard, plunging 24.37 percent to P3.01.

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