Profit-taking continues to hound PHL shares

Philippine share prices continued to drop in early trades on profit-taking Friday, as the market paused from the 31st all-time high record so far this year.

 

"The market is taking a pause pero expected mo na dahil kahapon down," Astro del Castillo, managing director of First Grade Holdings Inc., told GMA News Online. "Those companies which led previous highs suffers profit-taking today," he added.

 

The main PSEi shed 43.95 points or 0.60 percent to 7,308.85 as of 10:35 a.m. 

On Wednesday, the benchmark index soared to its 31st all-time high close of 7,392.20, fueled by first quarter corporate earnings and the relatively peaceful midterm elections on Monday.

 

Del Castillo noted the pause is "a must so the market will be at comfortable levels," adding, "Market should take a pause before another bull run." 

 

In its daily report, First Metro Securities Research noted the news to follow on Friday are the debut of Asia United Bank Corporation and the annual stockholders' meeting of Ionics Inc.

 

According to a Reuters report, Asia United jumped as much as 9.5 percent on its market debut on Friday after an oversubscribed public offer, the first listing after the country won investment ratings upgrades from two agencies.

 

The stock opened at P101.5 ($2.46), 6.8 percent higher than its offer price of P95 a share, before rising to P104.4 . The broader market was almost flat in early trade, Reuters noted.

 

Del Castillo said there is a need for more companies to go public. "We need more listings to give more choices for local and foreign investors. Hopefully, more companies will go public this year," he added. — VS, GMA News