The local stock market lost steam Thursday, (March 4) after investors took profit a four-day rally.
The main index dropped 60.27 points or 0.87 percent to close at 6,882.49 with only the Industrial sector managing to eke out a gain.
Volume fell to 2.7 billion shares worth P7.11 billion as losers edged out gainers 119 to 110 with 40 issues steady.
“Philippine shares edged lower after benchmark bond yields marched higher and a batch of fresh economic data suggested a more tepid rebound from the pandemic,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
Philstocks Financial Senior Analyst Japhet Tantiangco said “The local bourse declined as investors booked gains from the preceding 4-day rally.“ He added that, “The rise in the US bond yields and the elevated inflation expectations here at home weighed on investor sentiment triggering Thursday’s profit taking.”
AAA Equities Head of Research Chris Mangun said “The PSEi declined, ending its 4-day gain streak, as selling pressure picked up and trading volumes decreased.”
He noted that, “The rally that we have been seeing in the last few days is confirmed to be more of a correction after several weeks of decline instead of higher valuations due to the rollout of vaccines or easing of restrictions.”