PHL stocks end morning trade down on profit-taking

Philippine stocks ended the morning session lower Friday as investors continued to cash in on gains after the market made its 31st record high last Wednesday.

 

The main PSEi index lost 53.07 or 0.73 percent to 7,275.87 at the noon recess.

 

The broader all shares index declined by 23 points or 0.51 percent to 4,489.47.

 

All sub-sectors were in the negative territory, led by mining and oil, and property.

 

"The market is making a pullback due to its overbought condition at the moment," said Claire Quiray, analyst at Regina Capital Development Corporation in a text message. 

 

"Investors took profits which is normal on such investment condition," she added.

 

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

 

Meanwhile, the index stocks are "still dropping because of removal [of some stocks] from the MSCI index," Eagle Equities Inc. president Joseph Roxas said in a separate text message.

 

MSCI on Wednesday announced the results of the May 2013 Semi Annual Index Review for the MSCI Equity Indices, which will take effect on May 31, 2013.

 

For the Philippines, Metro Pacific Investments Corporation was added to MSCI Global Standard Indices while San Miguel Corp. was dropped.

 

For the MSCI Global Small Cap Indices, blue chips Megaworld Corporation and Robinsons Land Corporation were deleted, along with GT Capital Holdings Inc., Puregold Price Club Inc., and Security Bank Corporation.

 

Quiray said the market is "technically basing to establish a stronger ground."

 

Earlier, Astro del Castillo, managing director of First Grade Holdings Inc., said the "market should take a pause before another bull run." — VS, GMA News