PSEi drops further on profit taking, cautiousness

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THE Philippine Stock Exchange index (PSEi) continued its downward trend on Tuesday as investors pocketed gains from its recent climb.

PSEi drops further on profit taking, cautiousnessThe benchmark index closed at 8,291.88, down 69.81 points or 0.83%, while the all-shares index closed at 4,854.67, down 33.65 points or 0.68%.

Investors turned cautious after reports of a possible missile launch in North Korea, and others took profits during the early window-dressing session.

“Investors have been booking profits as they prepare for the MSCI index rebalancing due on Thursday,” Jervin S. de Celis, equities trader at Timson Securities, Inc. said in a text message.

“Philippine investors once again turned cautious after reports that North Korea may be preparing a missile launch. Others took this as a sign to sell and take further profit during the early window-dressing session, with one more trading day left in November on Wednesday,” Mr. De Celis added.

The index took cues from Asian and Japanese stocks, failing to gain momentum from the increases in Wall Street and European stocks.

MSCI’s broadest index of Asia-Pacific shares outside Japan slipped further from decade highs, touching its lowest in a week.

Meanwhile, Wall Street’s major indexes ended little changed on Monday, retreating modestly from record highs set during the session, as gains for Amazon countered losses in shares of energy companies.

The Dow Jones Industrial Average rose 22.79 points or 0.10% to 23,580.78, the S&P 500 lost 1 point or 0.04% to 2,601.42 and the Nasdaq Composite dropped 10.64 points or 0.15% to 6,878.52.

The UK’s FTSE 100 Index rose 0.10%, and Germany’s DAX Index rose 0.2%. Japan’s Nikkei 225 Stock Average declined less than 0.05%, the lowest in a week, and the MSCI Asia Pacific Index decreased 0.1% to the lowest in a week.

Investors will be awaiting the summary of regional anecdotes from the 12 Federal Reserve districts from the Beige Book as well as the outcome of the latest Organization of Petroleum Exporting Countries meeting in Vienna.

All sectoral counters declined except financials, which closed at 2,090.57, up by 0.15 point.

Meanwhile, mining and oil led losers as it went down 615.65 points or 5.07% to end at 11,526.59. Services dropped 28.50 points or 1.74% to 1,605.32; holding firms gave up 71.49 points or 0.84% to close at 8,443.69; property declined 25.32 points or 0.64% to 3,904.86;  and industrials lost 7.73 points or 0.07% to finish at 10,845.25.

Value turnover went up to P8.82 billion yesterday from Monday’s P6.35 billion as 1.74 billion shares were traded.

Decliners outnumbered advancers, 115 to 75, while 52 names ended flat.

Net foreign selling persisted, with the net outflow going up to P51.77 million on Tuesday from P32.38 million the previous session. — P.P.C. Marcelo with Reuters