Stock drop as investors take profit

Published May 31, 2021, 4:20 PM

by James A. Loyola

The local stock market dropped after investors locked in gains from last week’s rally amid uncertainty whether quarantine measures will be eased or tightened.

The main index lost 46.02 points or 0.69 percent to close at 6,628.49 with only the Financials sector mamaging to hold its ground.

Volume also fell, with only 1.39 billion shares worth P5.39 billion changing hands as losers beat gainers 103 to 85 with 57 steady.

“Philippine shares closed lower after several days of successive gains last week as the index consolidated in the 6500 to 6700 range,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He noted that, “There were also a lack of leads with the US being closed for Memorial Day tomorrow. Furthermore, investors are waiting for the maiden listing of consumer heavyweight Monde Nissin, which lists tomorrow to kick start the month of June. Many are assessing the latest economic data sets coming out.”

Philstocks Financial Senior Analyst Japhet Tantiangco said “The local bourse declined as investors took profits out of its preceding 4-day rally. Investors booked gains while waiting for the government’s decision with respect to the quarantine measures of the country after May 31, 2021.”