The local stock market dropped as expected due to profit-taking following last week’s rally.
The main index lost 74.03 points or 1.12 percent to close at 6,550.76 as Conglomerates led the retreat across the board. Volume thinned down to 554 million shares worth P2.99 billion as losers beat gainers 94 to 85 with 56 unchanged.
“Philippines shares had a bit of retracement during today's session as the past rallies in the exchange triggered some profit taking,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
Philstocks Financial Assistant Research Manager Claire Alviar said that, “After five consecutive days of market rally, investors took some gains.”
“Moreover, the sentiment was further dampened as China’s economy missed expectations, with a growth rate of 6.3 percent compared to the anticipated 7.3 percent . This adversely affected sentiment in Asia as many countries in the region are either China’s trading partners or have some form of connection with the country,” she noted.
China Bank Capital Managing Director Juan Paolo Colet said “The market took a breather today as traders cashed in on gains after last week’s rally. Investors also digested BSP Governor Eli Remolona’s recent hawkish remarks, which suggest that the door remains open to potential rate hikes.”