PSEi breaks 8-day rally on profit-taking

Share prices on the Philippine Stock Exchange broke its eight-day winning streak on Wednesday as market players started pocketing gains from the recent rally.

 

The benchmark PSEi tumbled by 45.99 points or 0.57 percent to 8,052.69 at the closing bell. The broader All Shares index fell 18.69 points or 0.40 percent to 4,610.10.

 

Over 1.2078 billion shares valued at P6.3942 billion were traded. Decliners trumped advancers, 91 to 77, while 57 issues were unchanged.

 

The market's decline is mainly attributed to profit-taking activities of investors, Asiasec Equities Inc. market strategist Manny Cruz told GMA News Online.

 

"The market is a bit overbought which induced selling pressure," he said. "The PSEi had difficulty at the 8,130-8,150 level, which is now seen as a major barrier."

 

On Tuesday, the main index rose to its 26th all-time high when it closed at 8,098.68. The index has climbed for eight days, but has broke new records for seven straight days.

 

The PSEi also set a new intraday high of 8,136.97.

 

Cruz also said the local market took cues from the decline on Wall Street.

 

The US dollar rose more than 1 percent on Tuesday, resuming a recent upward trend and weighing on Wall Street stocks as investors fretted the currency's strength would hurt multinational corporate profits, Reuters reported.

 

"The market will continue to take cues from the US market after the holiday, with support at 8,030 and resistance at 8,150," Cruz noted.

 

Philippine financial markets will be closed on Thursday, April 9, in observance of Day of Valor. — RSJ, GMA News