Profit-taking continues to weigh on PHL shares

Philippine shares extend losses for two consecutive trading days Friday, as profit-taking continued to hound the market after the main PSEi attained its 31st record close for the year.

 

"The market closed by a negative 0.42 percent due to profit-taking after the market went for record highs earlier this week," Abbygayle M. Estrella, analyst at AB Capital Securities Inc., told GMA News Online.

 

The benchmark PSEi declined by 31.07 points or 0.43 percent to 7,279.87 at the close.

 

The broader all shares index was down 16.26 points or 0.36 percent to 4,496.21.

 

"The market was also dragged down by the portfolio realignment  in the MSCI Index which affected stocks that were added and removed," Estrella added.

 

It was a different story for Asia United Bank Corp., the lender which debuted on the Philippine Stock Exchange on Friday and gained 9.47 percent. "AUB went up from a listing price of P95 to P104. The large gain is contrary to the market's performance today," Estrella noted.

 

The bank, owned by unlisted Philippine snack food manufacturer and exporter Republic Biscuit Corp., sold 88 million primary shares, including the over-allotment portion of 8 million shares. It plans to use the offer proceeds to finance expansion plans, according to a Reuters report.

 

AUB is the second company to list on the PSE after Philippine Business Bank in February.

 

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.

 

However, MSCI late Wednesday announced the results of its 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, Megaworld Corporation and Robinsons Land Corporation, GT Capital Holdings Inc., Puregold Price Club Inc., and Security Bank Corporation were removed.

 

During Friday's trading, More than 1.9 billion shares valued at P13.42 billion changed hands. 

 

Decliners overshadowed advancers 101 to 65 while 44 stocks were unchanged. — VS, GMA News