PSEi breaks three-day rally amid profit taking

PSEi breaks three-day rally amid profit taking

By Revin Mikhael D. Ochave, Reporter

THE Philippine Stock Exchange Index (PSEi) fell on Tuesday as investors booked profits amid tensions in the Red Sea, breaking its three-day rally.

The 30-member stock Index dropped by 0.65% or 43.45 points to close at 6,637. The broader all-share index fell by 0.49% or 17.54 points to 3,506.23.

“The market declined as the main index approached a major technical resistance,” AB Capital Securities, Inc. Vice-President Jovis L. Vistan said in a Viber message. “The PSEi was hovering near a major downtrend line and a potential double as its current levels.”

“This prompted traders to take some profits following the recent run-up of the market,” he added. 

The local bourse declined as investors monitored tensions in the Red Sea, Mikhail Philippe Q. Plopenio, research and engagement officer at Philstocks Financial, Inc. said in a Viber message. 

“Tensions in the Red Sea is also being monitored by many because this poses an upside risk to oil prices,” he said. “This comes amid reports that oil tankers are avoiding the area amid the turmoil between United States forces and the Houthis.”

Investors were also waiting for a positive catalyst to emerge first before pushing through with a sustainable rally, Mr. Plopenio said. 

Last week, US and British warplanes, ships and submarines launched air strikes across Yemen in retaliation against Houthi attacks in the Red Sea, which is one of the world’s busiest shipping lanes. 

The Islamist militants said its attacks in the Red Sea aim to show its alliance with Palestinians amid the Israel-Hamas war.

All sectoral indexes fell on Tuesday. Mining and oil declined by 1.45% or 140.10 points to 9,497.39; industrials by 0.93% or 86.62 points to 9,139.20; holding firms by 0.64% or 41.43 points to 6,366.19; and property by 0.63% or 18.36 points to 2,882.57.

The service index also fell by 0.5% or 8.31 points to 1,636.40, while financials dropped by 0.22% or 4.18 points to 1,838.97.

“Among the index members, JG Summit Holdings, Inc. was at the top, climbing 2.2% to P41.90. ACEN Corp. lost the most, dropping 2.96% to P4.26,” Mr. Plopenio said. 

Value turnover improved to P5.98 billion with 501.41 million issues changing hands from P5.82 billion and 460.92 million issues on Monday.

Decliners outnumbered advancers 114 to 67, while 58 stocks were unchanged.

Net foreign buying reached P461.86 million, a turnaround from the P244.01 million net foreign outflows a day earlier.