Profit-taking halts PHL stock’s three-day climb

PHILIPPINE SHARES closed lower on Tuesday as investors pocketed gains following the market’s three-day rally.

The Philippine Stock Exchange index (PSEi) on Tuesday fell 0.33% or 22.28 points to close at 6,667.09, while the broader all-stock index fell 0.23% or 8.29 points to close at 3,585 ,93.

“The local market fell due to last-minute profit-taking after a three-day consecutive rise,” Philstocks Financial, Inc. said. Research and Engagement Officer Mikhail Philippe Q. Plopenio in a Viber message. “Many chose to sit on the sidelines as net market value sales were tepid.”

“Next Tuesday’s correction could imply that investors are not yet ready to see the stock market above the 6,700 resistance level,” Mr. Plopenio added.

“Local stocks succumbed to profit-taking following a sequential rise in the index as investors bet the failed assassination attempt would boost Donald J. Trump’s chances of regaining the White House,” said Luis A. Limlingan, Chief Sales Officer of Regina Capital Development Corp. in a Viber message.

The shooting attempt on the life of Republican candidate and former US President Donald J. Trump immediately changed the dynamics of the presidential campaign, which focused on whether President Joseph R. Biden should drop out due to concerns about his age and acuity after a stagnant June crisis. 27 debate performances, Reuters reported.

Mr Limlingan added that US Federal Reserve Chairman Jerome H. Powell’s dovish comments also affected the local market’s movement on Tuesday.

Mr. Powell said on Monday that the three U.S. inflation readings for the second quarter of this year “contribute somewhat to confidence” that the pace of price increases is sustainably returning to the Fed’s target, comments that signal a turn toward yields . Cuts may not seem far away, Reuters reported.

Traders continue to expect a rate cut in September, followed by further cuts in November and December, bringing the key rate down to 4.5%-4.75% by the end of the year.

Almost all sector indexes closed lower on Tuesday, with real estate being the only gainer, rising 1.73% or 45.86 points to 2,697.04.

Financial services fell 1.32% or 26.89 points to 2,000.53; services fell by 0.84% ​​or 17.35 points to 2,029.27; mining and oil fell 0.56% or 48.98 points to 8,597.27; holdings fell 0.33% or 19.45 points to 5,765.91; and industrials lost 0.27% or 24.75 points to end at 9,131.75.

“Among the index members was Ayala Land, Inc. at the top, up 3.26% to P31.70. PLDT, Inc. lost the most, falling 3.23% to P1,499,” Mr. Plopenio said.

Fallers defeated advanced players, 98 versus 79, while 55 problems remained unchanged.

Net foreign purchases on Tuesday amounted to P304.96 million, a reversal from the P46.18 million in net sales recorded on Monday. — RMD Ochaaf of Reuters