Stocks drop on profit-taking

Published May 18, 2021, 5:16 PM

by James A. Loyola

The local stock market weakened as investors were quick to pocket any gains made in the previous session.

The main index dropped 38.84 points or 0.62 percent to close at 6,244.74 although the Services and Mining and Oil counters managed to advance.

Volume was higher at 2.63 billion shares worth P6.19 billion as there were twice as many losers at 139 against 70 gainers with 50 unchanged.

“Philippine shares continued to drift as inflation concerns and dwindled tech stocks continued to weigh on global equity markets,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that, “Conversely, gold prices hiked to their highest in more than three months on the back of subdued U.S. Treasury yields and a continued rise in inflation worries.“

Philstocks Financial Senior Analyst Japhet Tantiangco said “The local bourse declined as investors booked gains out of its preceding 2-day climb.”

He explained that, “After two straight trading days of staging a last minute comeback, the local market finally gave in completely to selling pressures as COVID-19 worries weighed on investor sentiment. This comes on the back of the entry of the Coronavirus variant from India in the Philippines.”