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Stocks succumb to profit-taking.

By James A. Loyola

Local share prices fell on profit-taking on Tuesday after a strong start as investors pocketed gains from the recent rally.

The benchmark Philippine Stock Exchange index (PSEi) lost 101.72 points, or 1.22 percent, to close at 8,263.57 with only the Financials and Mining & Oil counters managing to remain in the green. A total of 1.21 billion shares valued at P10.491 billion changed hands. Advancers outnumbered decliners, 121-85 with 48 issues unchanced.

"The local market succumbed to last minute profit taking on Sino-US trade sanction news headlining the market," said Regina Capital Development Corporation Managing Director Luis Limlingan.

US Treasury Secretary Steven Mnuchin said he and Trade Representative Robert Lighthizer expect to speak by phone with Chinese officials this week about continuing negotiations.

Separately, China may sanction firms like General Dynamics, Honeywell and Raytheon if the U.S. sells weapons to Taiwan.

The People's Daily newspaper said their non-defence businesses in China may be boycotted in an article circulated on WeChat.

"We had another heavy volume day with trading value at P10.15 billion excluding block sales, topping yesterday's trading volume," said AAA Equities Head of Research Christopher Mangun.

He added that, "foreign funds flowed in for a second day in a row with foreign net-buying at P1.18 billion."

"Today's retreat is a healthy pullback after the massive gains that we saw yesterday. Investors took profits on their blue-chip positions after seeing almost no action for the last several months," noted Mangun.

CAPTION(S):

Traders work beneath an electronic ticker at the trading floor of the Philippine Stock Exchange in Bonifacio Global City (BGC).(Bloomberg file photo)

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Title Annotation:Business News
Publication:Manila Bulletin
Date:Jul 16, 2019
Words:277
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