Stocks weaken on profit-taking

Published August 5, 2021, 5:43 PM

by James A. Loyola

Investors took profits from the stock market’s rally, taking their cue from the drop in US bourses.

The PSEi shed 37.94 points or 0.58 percent to close at 6,547.27 as the Property sector led the retreat while the Industrial and Services counters managed to advance.

Volume was steady at 961 million shares worth P4.77 billion as losers gained the upper hand over gainers at 108 to 80 with 34 unchanged.

“Philippines shares retreated after U.S. Fed Vice Chairman Richard Clarida announced that the central bank could taper the asset bond purchases later this year, opening up the possibility of rate hikes in 2023,”said Regina Capital Development Corporation Managing Director Luis Limlingan.

He addec that, “Locally, investors sold on news as inflation became a non-event. The July print came in at 4.0 percent which was well within analysts’ forecast.”

Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “Selling pressures dominated the local market as investors took profits out of its preceding 3-day rally.”

He noted that, “Trading remained tepid with net value turnover below the year-to-date average of P7.25 billion. This is as many investors still choose to stay out of the market amid the lingering uncertainties in our COVID-19 situation.”