LOCAL EQUITIES weakened further on Monday as investors continued taking profit in the wake of last week’s record highs and ahead of third-quarter earnings reports.

The Philippine Stock Exchange index (PSEi) shed 72.63 points or 0.86% to end 8,348.32 yesterday — the lowest level in two weeks, while the broader all-shares index likewise declined by 28 points or 0.57% to 4,885.79.

“Philippine equities continued on profit taking after hitting a new record high last week, and remained on the sidelines prior to the release of earnings,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile phone message.

RCBC Securities, Inc. equity research analyst Jeffrey Lucero noted Monday’s low value turnover, attributing the market performance yesterday to “profit taking still, but investors may have stayed on the sidelines ahead of reporting season as total value turnover (not including block sales) was feeble at P5.4 billion.”

Much of Asia saw mixed fortunes despite Wall Street’s record highs last week, with Japan’s Nikkei Stock Average 225 and TOPIX index, South Korea’s KOSPI, the Shanghai-Shenzhen CSI 300 and the Jakarta Composite index rising 1.11%, 0.84%, 0.02%, 0.10% and 0.53%, respectively, while Hong Kong’s Hang Seng, the S&P/ASX 200 and the MSCI AC Asia Pacific gave up 0.64%, 0.22%, and 0.10%.

Unlike Friday, which saw all six Philippine sectoral indices end lower, Monday saw the sectors equally divided between those that gained and those that lost.

Holding firms led the drop, falling by 156.88 points or 1.8% to finish 8,526.91, followed by financials that gave up 23.55 points or 1.13% to 2,044.35 as well as mining and oil that declined by 64.32 points or 0.49% to end 12,867.69.

RCBC Securities’ Mr. Lucero noted that holding firms Ayala Corp. and SM Investments Corp. “which practically drove the run-up of the PSEi the previous weeks fell heavily today” giving up 4.95% to P1,017 and 3.01% to P950 apiece, respectively.

The other three sectoral indices ended with gains: property added 10.20 points or 0.26% to 3,930.88, industrials increased by 27.68 points or 0.25% to 10,848.31, while services rose by 0.74 of a point or 0.04% to 1,698.75.

Stocks that gained were led by Melco Resorts and Entertainment (Philippines) Corp., Lopez Holdings Corp., and Premium Leisure Corp. that surged by 10.43% to P7.73, 9.22% to P6.40, and 3.73% to P1.39 apiece, respectively.

A total of 744.19 million issues worth P13.29 billion changed hands, compared to Friday’s 906.29 million shares worth P10.17 billion. Stocks that lost edged out those that gained 111 to 90, while 37 were unchanged.

Monday capped three straight trading days of net foreign selling, recording P7.57-billion net buying this time. — Arra B. Francia

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