Stocks drop on profit taking

The PSEi dropped in the last trading day of the month as investors took profit from the previous day’s spike in prices.

The main index lost 63.33 points or 0.99 percent to close at 6,315.93 as Conglomerates led the retreat although the Banks and Services counters continued to advance.


Volume surged to 566 million shares worth P18.05 billion due to block sales of Meralco shares worth P12.4 billion including a placement by JG Summit. Losers beat gainers 116 to 74 with 50 unchanged.

“Philippine shares were sold to close the month after successive bargain hunting session, as they became wary of the negative US GDP reading,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He noted that, “The slowdown in growth made the markets bet that the Fed would slow its aggressive hiking campaign.”

AB Capital Securities said “Profit taking brings local equities down following concerns on global growth, after the US reported the second straight quarter of GDP contraction.” Good afternoon Sir! Here is our comment for today.

Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “The local market fell as investors took profits from its preceding 3-day rally. Worries over the negative spillovers of the US economy’s weakening on the Philippine economy weighed on sentiment.”