Take Profit pulls PSEi down; The peso is up against the dollar

Profit-taking weighed on the stock market while the peso closed higher against the dollar as investors continued to await full-year economic growth results on Thursday.

The Philippine Stock Exchange Index (PSEi) fell by 28.18 points, or 0.40 percent, to close at 7,041.50 points, while the broader AOL lost 4.77 points, or 0.13 percent, to end the day at 3,686.48.

Meanwhile, the peso strengthened by 10 and a half centavos to P54.435:$1.

“Investors … cashed in at the last minute, dragging the stock market into the red,” said Claire Alvear, a researcher at PhilStox Financial Inc., ahead of fourth-quarter and full-year GDP growth data due in January 26.

“Despite the decline, the market was still able to hold above 7,000 levels,” Alvear added.

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“So far, we still see the 7000 to 7100 range as resistance for the market while support is held at 6800.”

Alviar continued that the net market capitalization of 5.00 billion pesos was weaker than last week’s average of 7.16 billion pesos.

Meanwhile, Managing Director of Regina Capital Development Corp. Louis Lemlingan said the disappointing start to the earnings season in the US and more signs of a slowdown in the world’s largest economy had also caused the local stock market to decline.

For his part, Michael Ricafort, chief economist at Rizal Commercial Banking Corporation, said the PSEi had corrected after global crude oil prices hit new 1.5-month highs amid the reopening of the Chinese economy.

The peso opened trading at P54.6:$1 and ranged from P54.39 to P54.64. Total trading volume for the day was $1.052 billion, down from $1.24 billion on Monday.

In the stock market, all sectoral indices except for industrial indices (up 0.57 percent) closed in the red on Tuesday. Holding companies were the most declining by 0.70 percent.

Just under 1.96 billion shares worth 5.40 billion pesos were traded.

Declining stocks were defeated by the applicants, with a score of 103 to 89, while 48 of them remained unchanged.

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